To the editor:
If you have a life insurance policy, you may want to read this.
As a young married man, I bought life insurance on my wife and me. After a couple of years, my agent (friend and neighbor) came by to sell me some more life insurance. After listening to his presentation, I decided to increase our coverage. When I told him this, he said that he could not write any more coverage on my wife as she was diabetic. He would be happy to increase my coverage. This made me very mad, and I told him to leave and be sure to cancel all of my life insurance.
A good friend of mine was telling me about his issue with life insurance. It seems that he had a life insurance policy for $3,000 that had been paid up for many years. When he turned 90 years old, he received a letter that he had to start paying premiums again. His new rate was to be $280 per month. Of course, he was irate, and went to see a lawyer. Yes, his policy stated that the premiums started over at age 90. Of course, in one year, he would have paid more than the original policy of $3,000.
The story gets even better. My wife’s dad bought a life insurance policy in 1980 for $5,000 at a cost of $50 per year. He later increased it to $15,000 at the same $50 per year. He has been paying that for 40 years. In 2015, he received a statement that the cash value was over $9,500. He did not receive another statement until this week. He received a letter that his premiums would now be $2,700 per year, beginning in March 2021. His cash value also dropped from over $9,500 to $1,300. At $2,700 per year, he would pay in twice what his cash value is. So, he decided to cash in the policy. Then he was told that the cash value would drop again by March 1. Of course they say that all of this is spelled out in the policy.
We have been talking to his agent that is in the Philippines. In our discussions, the agent also told us that at age 95, the entire policy is voided. He would get nothing. He will be 95 in less than two years. By living a long life, he has been penalized. Now, at age 93-plus, he has no life insurance.
For anyone who has a life insurance policy, it would be wise to read it very carefully.