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Honored Contributor
Posts: 12,997
Registered: ‎03-25-2012

Is this age discrimination or "just business?"

I received a notice in my mail Thursday from my life insurance company that my whole life policy was about to "lapse" unless I paid over $980 within 61 days. After that, the premium doubles to $320 a month, and future changes could even triple.

I bought this policy over 20 years ago and allowed the insurance company to take $160 per month directly out of my bank account each month for all of those years. Therefore, it was never late, and I always made sure the funds were there for the withdrawal. My life insurance policy was the one thing I was always sure of . . . that when I died, my children would get this benefit.

Needless to say, this notice shocked me to my core. I had just noted the $160 withdrawal for August several days ago and just took it for granted. I have moved a lot in the past 20 years, and I always made sure I made the insurance company aware of my new address and bank account number immediately, so there would never be any chance that this premium would not be paid on time. It is the only asset I have to pass on to my children.

I called them immediately and was told that I no longer had enough money in my "policy account value" due to the "fluctuation of the subaccounts I have selected." I was speechless, as I have never selected any "subaccounts" in anything. I was told my policy was tied to the market and there was nothing they could do. I had no idea that my whole life policy, which was to last until I was 98, was anything but a whole life policy. Now, all of a sudden, I am told that it has been tied to the market all of this time. I asked who, if not me, was selecting my subaccounts all this time. They said it was automatically selected by the insurance company if the policy owner did not choose to select them, and my account balance is now "zero," again, "because of the market."

To make a long and confusing story as short as possible, I spoke to one "gentleman" Thursday (when I had just gotten home from the dentist, and my mouth was killing me) and one last night, both of whom sounded as though they were just out of college and talked over me constantly. My anger caught up with me and believe me, they got earfuls of my very colorful language when that happens.

It finally became apparent that my "age" is the issue. I am now 76, no longer in my mid-fifties, and I will be subject to a lot of extra charges as I age. I asked how many and how much and was told there was no way to know, as it depended upon the "market." I asked how come it didn't change radically in 2008 when the market crashed, and that's when they had to admit it was because I am older now. Duh!! It is obviously the insurance company's decision to change the rules as their customers dare to live longer.

The guy last night actually suggested that he transfer me to another department so that I could lower the policy benefits by $100,000 and be able to keep the same premium for a while longer. He said it's totally up to me how I want to handle it. I said "thanks, but no thanks." I asked his name and hung up.

It's to my children's benefit that the policy be kept as is, so they have told me that if it gets to the point where I can no longer pay it all, they will supplement it to make sure in stays in force.

Yeah, I'm loving this.


Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986
Honored Contributor
Posts: 13,954
Registered: ‎03-10-2010

Re: Is this age discrimination or ""just business?""

Is this variable whole life or universal life?

There are MANY different kinds of "whole life" - I know, I just took the licensing test and have my textbook open right now.

You need to know just what kind of whole life you have.

If you can find out, I may be able to help you.

Esteemed Contributor
Posts: 6,221
Registered: ‎08-09-2012

Re: Is this age discrimination or ""just business?""

I'm sorry to say that whoever sold you this policy apparently sold you "down the river" at the same time. Whole Life policy premiums, if they are true whole life, should never go up even if you live to be 100. I worked in the insurance industry for several years, and I know that there are many unscrupulous so-called "insurance agents" out there, although most are very honest and do the best job they can. I'm still paying $5.73 a month for a policy I bought for my son when he was 3 years old - and he's now 45!

Insurance is a very confusing, complicated thing, and it's too bad that there are those who take advantage of people every day by using that fact to their own advantage for commissions, etc. I'm really sorry this happened to you. I have no idea what you can do about it now, but maybe your story will help someone else to be VERY careful when they decide to buy insurance. I wish you luck with it.

Honored Contributor
Posts: 12,997
Registered: ‎03-25-2012

Re: Is this age discrimination or ""just business?""

On 8/23/2014 terrier3 said:

Is this variable whole life or universal life?

There are MANY different kinds of "whole life" - I know, I just took the licensing test and have my textbook open right now.

You need to know just what kind of whole life you have.

If you can find out, I may be able to help you.

They said it is "variable," but I never knew that. I don't remember what I was told 20 years ago, and that is probably my fault. I do know I was NOT told it was "tied to the market" because that I would have understood.

However, this is the first time it has changed, so if it is a "variable" tied to the market, how come it never changed before?

They actually admitted it was due to my age, both of them.


Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986
Esteemed Contributor
Posts: 6,527
Registered: ‎03-10-2010

Re: Is this age discrimination or ""just business?""

Too late now but term insurance is the way to go.
*********************
Keepin' it real.
Honored Contributor
Posts: 12,997
Registered: ‎03-25-2012

Re: Is this age discrimination or ""just business?""

On 8/23/2014 kittymomNC said:

I'm sorry to say that whoever sold you this policy apparently sold you "down the river" at the same time. Whole Life policy premiums, if they are true whole life, should never go up even if you live to be 100. I worked in the insurance industry for several years, and I know that there are many unscrupulous so-called "insurance agents" out there, although most are very honest and do the best job they can. I'm still paying $5.73 a month for a policy I bought for my son when he was 3 years old - and he's now 45!

Insurance is a very confusing, complicated thing, and it's too bad that there are those who take advantage of people every day by using that fact to their own advantage for commissions, etc. I'm really sorry this happened to you. I have no idea what you can do about it now, but maybe your story will help someone else to be VERY careful when they decide to buy insurance. I wish you luck with it.

I know . . . I was "had" at the time, I thought "whole life until I am 98" was whole life. Obviously, I was wrong.

I'm stuck with it now . . . I'm certainly not going to drop it. Thanks for your offer to help.


Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986
Esteemed Contributor
Posts: 6,527
Registered: ‎03-10-2010

Re: Is this age discrimination or ""just business?""

Parents who strap themselves financially to make their (in some cases ungrateful) children rich. I'll never understand it.
*********************
Keepin' it real.
Honored Contributor
Posts: 13,954
Registered: ‎03-10-2010

Re: Is this age discrimination or ""just business?""

On 8/23/2014 esmerelda said: Too late now but term insurance is the way to go.

Term insurance can be renewed at the end of the term with no medical check-up...but premiums can (and will) go up...the older you are, the higher the premium for the same amount of coverage.

You can also keep term insurance with a fixed premium, but at every stage when the policy is up for renewal, the value of the death benefit will go down.

Super Contributor
Posts: 632
Registered: ‎06-26-2014

Re: Is this age discrimination or ""just business?""

Most experts say whole life insurance is a waste of money. Life insurance is so dependents will be able to continue a lifestyle provided by the the insured and cover burial expenses.

Your children are grown. Why not reduce the benefits or if there is a cash benefit, cash it out?

The reps you spoke with did not make the policy, they are merely the messenger. Why would you use very colorful language with them?

Super Contributor
Posts: 430
Registered: ‎05-12-2010

Re: Is this age discrimination or ""just business?""

If it's a variable universal policy, then age is absolutely a factor in its cost. It's not discriminatory - it's inherent to the type of policy. You may wish to discuss the policy with a financial advisor to determine the best course forward.