Insurance co. converted whole life policy to term

[amfamscam]

What is the name of your state? Iowa
For a ten-year period, (early 1980's to early 1990's), I paid 37 dollars per month for a $50,000 whole life policy. The policy would then become "self-funding" and supposedly grow! (I understand that it couldn't grow as they predicted back then)
My agent has just informed me that the company has "converted' this to a term policy ($50,000) that will completely expire in 12 years, when I will be in my late 50's.
I held up my end of this contract, they have reneged. How can I pursue this?
My agent claims that I "must have received something in the mail from the home office and signed it". I certainly don't recall that and I will make them prove that I did sign anything, but whether I did or did not, is this ethical or legal?
Thank you.

 

[Dandy Don]

Do you have a copy of the original policy?

Even if you don't, ask the insurance company or your agent to send you the information on what the changed/revised policy is, and without telling them, file a complaint against them with your state insurance commissioner to have him investigate to see if what they have done is legally allowable or not. Seems like in the interest of fairness they should have given you the option to agree with this or decline, not just automatically making the change.

DANDY DON IN OKLAHOMA ([email protected])

 

[Betty]

I would ask the ins. co. to send you a copy of the form you signed requesting (agreeing) to this change. I would also review the policy thoroughly to be sure the contract is as you believe it to me. (review the provisions of the policy - ask your agt. for help if you need to)

 

[somarco]

Many carriers were using "vanishing premium" illustrations during the 80's that showed how you could pay a premium for a dozen years or so then stop paying and the policy would continue without future payments. As you have stated, those illustrations were faulty.

You may also recall the illustrations had disclaimers stating the projected values were not guarantees.

I can only guess, but it would appear you stopped paying your premiums some time ago and the non-forfeiture values kicked in. One of those option is extended term insurance which preserves the face value but sets a time when the policy will expire.

Other non-forfeiture options include cashing out the policy for the surrender value or taking a reduced paid up policy for a lower face amount in a policy that would be good to age 100 or death, whichever occurs first.

I would ask the carrier for a copy of any form you may have signed, but it is also possible the option was selected by the carrier by default.

 

[Betty]

I bet Somarco is right - that it was a vanishing premium life ins. policy. There have been lawsuits (some class action) re this type of policy being misleading to the consumers.

 

[amfamscam]

Thanks for all replies!

Your replies have helped me gather more information about this problem. I researched "vanishing premium" on the Internet and all I can say is Yes, that's what happened, and what a mess! The phrase that I recall when I purchased the policy was "self-sustaining" but the idea is the same. I wrote my agent 10 days ago (simply requesting documentaion of the changeover) and have gotten no reply.
Maybe he has passed it up the chain of command.
Thanks to all.