Life Insurance Problems

[Darla5258]

What is the name of your state (only U.S. law)? Tennessee

My dad has had an insurance policy since 1986 -- the company (which was a well known one merged with another well known company about 7 years ago). When the whole life policy was originally written it was for $9000 and the premium was $27.42 monthly. He receive a letter about 6 months ago telling him he was not paying enough premium for his policy; however, the amount they bill him each month has not changed it has remained $27.42, he then began doubling it (being 75 he wasn't sure what to do). He received a letter on Friday February 12 stating that because his premium was not enough to cover the amount of the policy they were canceling it. Can they legally cancel the policy slam bam thank you -- when they have collected approximately $7247.88 not giving him anything for all he has paid, etc.??

 

[cbg]

Did he at any time call them and ask what he should do?

 

[Dandy Don]

If he has a record of his payments (cancelled checks), he should write a letter to the insurance company (and also provide a photocopy of the cancelled checks, FRONT AND BACK OF THE CHECKS TO SHOW THE BANK'S ACCOUNT NUMBERS TO PROVE THEY CASHED IT) and send the letter to them by certified mail to see if they will respond. If they do not respond within a few months time, then file a complaint with your state's insurance commissioner so he can investigate. They CAN cancel the policy but it must be in accordance with a legal reason, not just arbitrarily do it without justification.

 

[Darla5258]

I believe he had called the agent at one time who was supposed to look into it; however, the agent didn't get back in touch with my dad nor did my dad follow up. My mother was sick for a long time and passed 18 months ago -- so with all of that going on -- I am sure he never thought about it. I feel if they didn't think it was enough to cover a whole life policy then they should not have offered it at that rate -- and they should offer him the monies back. He didn't schedule the rate the company did.

 

[cbg]

The problem is that it appears he was on notice for some time that there was a problem, even if the problem was not of his doing. If he failed to follow up on the issue, he may not have many options now.

What he needs to do is IMMEDIATELY contact them and find out what he would have to do to have the policy reinstated. If he even can.

While it's impossible for a message board to determine what happened or why he was billed the way he was, the carrier does seem to have made some effort to contact him about it. If he did not follow up with them to resolve it, that's not their problem and they can take what action they find necessary.