Cash surrender

[scagnt83]

my gripe is that i didnt know they were taking it out which is my fault but i didnt have the option of cashing the policy in and now my cash value is gone

Before a policy starts to do that, they send letters informing you of the premium needed to sustain the policy. If it is to the point of a significant loss of cash value, they would have sent multiple letters by this point. Policies that are to that point usually get a letter every year telling them the estimated lapse date based on current premium. You probably thought they were normal statements and didnt really look at all of what they sent.

You can most likely see recent correspondence from the carrier going back at least a year or two on their website. Im pretty sure every state has laws regarding this issue. If they did not send any letters, then you certainly would have a valid complaint to file against them.

 

[WinoBlues]

my gripe is that i didnt know they were taking it out which is my fault but i didnt have the option of cashing the policy in and now my cash value is gone

If, probably, a UL you most likely got a Annual Report every year. Depending on the company it showed you what was and would happen. Also if the company and agent has reached out to you in the past to offer a review.

Now, there may be some options. I would find a good independent agent to check it out. First gather your last Annual Report, order an In Force Illustration, ask for a projection illustration showing the premium need to keep the policy inforce to say age 100.

Being a Independent I am biased towards agents that have many company and product opinions. As an old crusty agent I am also biased to Independent _experienced_ agents.

Be open minded and remember the agents on this board or any you call are helping you and they did not break it.

Ask many questions, then act.

 

[WinoBlues]

Agents - I am working on 4 different client couples that are dealing with imploding ULs. These were company referrals. There are a ton of these still out there. With the right prospects they become good profitable clients.

 

[Life Hawk]

it says adjustable life

Spoke with a guy last week about one of these. He barrowed $16K from it, he only pays the premium and no interest. After speaking with his carrier we learned it's about ready to sink and he cannot afford to replace it.

He'll loose with in a year.

 

[scagnt83]

I used to work a lot of orphaned UL cases that were crashing. Imo, insurers need to do a better job in the way they inform clients. They are doing better now, but the old letters they sent out were horrible sometimes. I saw one that used a 2 page letter informing them of the issue with the policy. They didnt actually say it was in danger of lapsing until the last paragraph. How many people do you think actually read the full two pages? Only an agent would really understand much of what it said.

At least now they often say something about the policy being in danger of lapsing somewhere near the beginning of the letter. But very few carriers are proactive about getting these clients an agent to speak to. When they do, its usually captive agents they give it to if they have a captive sales force... guess how many of those get shown all the options available... lol. Or even just reaching out from customer service to let them know in person.

They could find more effective ways to get the point across. But I know it also makes them look bad since the client feels misled. Regulators likely could do more to force insurers on this issue ig.

 

[DHK]

Spoke with a guy last week about one of these. He barrowed $16K from it, he only pays the premium and no interest. After speaking with his carrier we learned it's about ready to sink and he cannot afford to replace it.

He'll loose with in a year.

 

[Life Hawk]

Yep... that pretty much sums it up.