New monthly payment

[frona]

California

My father has been paying $20.00 a month for a $ 40,000 life insurance policy since 1992.
He recently received a letter from his insurance company informing him that he had no cash value in the account and that his new payment rate was $400 a month. He was not informed about the increase in payment rate and the insurer had taken the cash value of the account to cover the increased payment.

My question is:
Is there any way he can get his money back?- he would have canceled the policy immediately if he had been informed.
The insurer told him he could cancel, but since there was no money left in the account he would receive nothing.

Thank you- I hope someone can help us with this

 

[Betty]

If the policy no longer has any cash value, there would be nothing to pay out should the policy be cancelled. Sorry. The policy can be cancelled so no
additional premiums have to be paid but that's it.

There should have been something in the policy provisions re increasing premiums at certain intervals & using the cash value to pay premiums due. Did he ask his ins. agt. about this or look in the policy?