Military and additional life insurance

[snappyhat]

What is the name of your state? California (currently)

My fiance, a marine, was recently reviewing his bank statement and discovered he was paying for an additional life insurance policy outside of what he gets with the service.
It was a high amount being paid every month and very minimal return on the policy, so he canceled it. They canceled his plan and sent him a small percentage back shortly after.

The question I have stems from conversations I have had with several neighbors.
What they claim is that if this other insurance company knew of my fiance being in the military before signing, that they were practicing questionable ethics of some sort by signing him, and that they may have to return all that he had paid into the policy to this point (about 5 years).

I realize that it is quite possible this is not true, but I also believed it was worth looking into..

So, would anybody know if something like this could be true??

Thank you.

 

[SHORTY LONG]

Contact the California State governing Insurance division.

 

[Betty]

Did the ins. co. know he was in the military when they approved the application?

All ins. cos. do not underwrite the same. The co. I worked for would issue coverage to "some" military personnel. We would normally limit the amt. of ins. though, only issue certain plans & also base our decision on where they were to be stationed.

I doubt if the ins. co. will pay back the premiums already paid because if he had died while the policy was in force, they most likely would have paid out the policy's face amount to the beneficiary.

 

[snappyhat]

Did the ins. co. know he was in the military when they approved the application?

He says that they did know that he was military.

Thank you for the other info.

 

[Betty]

Since they knew he was in the military, it is apparently a co. that issues to at least some military personnel.

 

[Dandy Don]

He may want to file a complaint with the California State Insurance Commissioner (do a Google and you can find the website).

First, he needs to jog his memory to try to remember if he ever filled out a document to sign up for this policy premium or check with his credit card company or insurance company to determine if he in fact authorized the deduction or whether it was done without his approval.

DANDY DON IN OKLAHOMA ([email protected])

 

[ShyCat]

Oh please, after FIVE YEARS he's supposedly just now DISCOVERING these payments?!! I call B.S.

The way I see it? He signed up for whole life insurance just five years ago, decides to cancel it and is disappointed that the cash value returned to him was so little. He expected more and wants to believe that the insurance company owes him more money.

 

[snappyhat]

Oh please, after FIVE YEARS he's supposedly just now DISCOVERING these payments?!! I call B.S.

The way I see it? He signed up for whole life insurance just five years ago, decides to cancel it and is disappointed that the cash value returned to him was so little. He expected more and wants to believe that the insurance company owes him more money.

Actually, no, he did not know about it for reasons that really don't need to be divulged at this time.

What he was paying simply wasn't worth it, which is why it was canceled.
He wasn't aware that he would get anything back when he canceled it, so what was returned was a surprise to him. He is not trying to leach the system, so save your judgments, please.

I am the one who posted this, and as I explained, it is because I had heard some things and was curious. He is not looking for an easy buck or anything. It is just that if what we had heard was true, we would want to know. I doubt there are many who would not.

Thank you to everyone who has responded. I truly appreciate it.

 

[Betty]

I agree with ShyCat that he should have known premiums were being taken out for 5 yrs. Even if he didn't, I doubt the ins. co. would be deducting premiums if an application was not submitted to them.

 

[snappyhat]

I agree with ShyCat that he should have known premiums were being taken out for 5 yrs. Even if he didn't, I doubt the ins. co. would be deducting premiums if an application was not submitted to them.

My question was never weather or not he had submitted anything to them (although, I will look into it and make sure. Fraud hasnt been a stranger).
It also had nothing to do with what he should have known.
He has been deployed for the majority of the past 5 years, didn't have the regular expenses and therefore didn't keep track of things like he should have.
Oh well, whats done is done.
It wasn't until he came home and began paying rent and such again that he discovered this.

 

[Betty]

Ok - I was just trying to say I don't think the ins. co. was doing anything wrong from the info in your post.