LIfe Insurance Unfairly Canceled

[cnybiz]

What is the name of your state? New York
I have been paying my life insurance premiums online for many years and have never missed a payment in over 15 years. Recently, the insurance raised my quarterly payment and I neglected to increase the amount of my online payment. They evidently sent me 2 notices of an increase but I got into the bad habit of not opening the payment notifications because it was being paid automatically.

They cashed two quarterly payments of $660 against the rate increase of $740 in January. On August 4th I received a notice that my policy was canceled. I called them and they said in effect, "tough luck." I have a medical condition that will prevent me from being reinstated. I am 56 years old and now my wife will be left with now insurance. Is there anything I can do? I have already filed a claim with New York State Insurance Commission but do not hold out much hope as they sounded like a bunch of non-caring beauracrats.

The company is Connecticut General in Bethlehem, Pa.

 

[somarco]

Is this a permanent plan or term?

 

[cbg]

Recently, the insurance raised my quarterly payment and I neglected to increase the amount of my online payment.

That's your fault, not theirs.

They evidently sent me 2 notices of an increase but I got into the bad habit of not opening the payment notifications because it was being paid automatically.

Sounds as if they made every effort to resolve the situation with you. It's not their fault you don't open your mail.

I don't see that the policy was cancelled unfairly. If you aren't paying the full premium cancellation sounds like a perfectly reasonable response to me.

 

[Dandy Don]

You have no choice but to throw yourself at their mercy and explain exactly what happened--they might have sympathy if they find out that you unintentionally failed to open the envelopes. As it stands now, they are wrongly assuming that you had opened the notices and were deliberately deciding not to pay up.

And offer to pay the outstanding difference.

And what lesson have we learned here? Always open up all mail that comes to the house.

DANDY DON IN OKLAHOMA ([email protected])