Can life ins be cancelled with no notice?Go to Top
Hello! I am not an agent...I found this forum while searching for an answer. Perhaps some of you have heard of our problem, and can offer advice. It will be much appreciated.
A few months ago, my husband & I decided to look for a life ins. policy to supplement what we already have (250K on me & 50K on him).
I found a company called Matrix Direct, and through them, we got a 30K policy on my husband from Globe Life Ins., bringing my husband's total amount of life ins. to 80K.
This was fine, and plenty of ins. since everything (all the bills) are in my name. I just wanted enough on him if anything happened to pay off the few bills he does have, and give something to his son and our daughter.
The new policy for 30K was issued on 5/1/08. I immediately set up automatic bank draft for the premium. Everything was fine and they were taking the premiums each month.
Last weekend while reconciling my bank stmt, I noticed there was no draft for 9/1. In checking back, they actually didn't take it on 8/1 either; at that time I just figured the timing was too close or they had a glitch and I didn't worry about it. But when I saw the Sept. payment not taken either, I knew something was wrong.
Monday a.m., I called Globe to find out. The CSR would not tell me, saying a "supervisor" would have to call me. Later Monday I called again and got the same answer.
Tuesday I called the Matrix Direct guy and he has called them twice also. They won't tell him anything either.
In checking their online account services, it simply says the policy is "inactive". Well yeah, since THEY are not taking the premiums!
Nothing has changed in our lives; the bank account is the same; the balance averages far more than the $98 premium so it is definitely NOT an issue with getting it.
I also e-mailed Globe yesterday and absolutely begged for an answer. Nothing. No answer. No call. Zilch.
Can they do this? What on earth could be the reason? We, and the Matrix guy are just totally stumped here. Not a clue what the heck is going on.
It's a darn good thing I didn't kill my husband during the 16 days we went without power due to Hurricane Ike! (Just kidding!)
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by moonlightandmargaritas
"Any ideas at all are welcome!"
This is what happens when you buy insurance through a website, with a call center with $7.00 an hour "CSRs" manning it.
Next time, use an experienced agent. When these inevitable problems come up, there's someone to help you.
Doesn't cost any more either.
It doesn't? I always thought it did cost more...just a misconception on my part. At the time, I spoke with the Matrix guy at length. He seemed to be experienced and knowledgable, but I'm starting to see what you mean.
When he suggested Globe, I was not all that impressed, due to all the mailings I have gotten from them through the years. But I checked on their ratings, etc., and figured they must be ok. Should have listened to my gut feeling I guess.
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by somarco
Glitches can and do happen. Usually this occurs when the carrier tries to draft and there isn't enough money in the account.
The draft bounces and the policy goes into grace period status. Some carriers will try to draft again in 10 days or so, some don't.
Most will send you a late notice but it usually doesn't go out until near the end of the grace period.
As to why Globe isn't talking, that is anyone's guess.
They are a fringe carrier offering mass marketed plans to folks who are shopping for low face amounts.
For the $98 per month you could probably get double or triple the coverage on a similar plan with another carrier as long as hubby is healthy.
Before going back to Globe, or Matrix, you might want to check around and talk to a real agent.
Yeah, I'm sure they do. But I always keep close to $4,000 in the bank account, and I get a daily e-mail showing transactions and balance. It isn't a money issue.
The Matrix guy says they "can't" do this. He said once the policy was issued, they simply can't decide to cancel it, especially without cause, notice, etc.
He said he's never even heard of this happening. Have you, or anyone else?
Edit: My answer to moonlight isn't showing for some reason.
Last edited by pbates : 10-02-2008 at 09:49 AM.
Reason: previous post not showing yet
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by pbates
The Matrix guy says they "can't" do this. He said once the policy was issued, they simply can't decide to cancel it, especially without cause, notice, etc.
Forget the Matrix person. You're wasting your time.
Re: Can life ins be cancelled with no notice?Go to Top
Thank you all for your replies. Globe FINALLY called me, just a minute ago.
They said there was some sort of "glitch" in their system; THEY didn't know why the automatic drafting of the premium wasn't going through either, but that it wasn't anything to do with us or our bank.
Supposedly it is fixed now, and they are reinstating the policy, etc. I will be looking around for something better, as ya'll mentioned, and just get away from them.
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by pbates
Thank you all for your replies. Globe FINALLY called me, just a minute ago.
They said there was some sort of "glitch" in their system; THEY didn't know why the automatic drafting of the premium wasn't going through either, but that it wasn't anything to do with us or our bank.
Supposedly it is fixed now, and they are reinstating the policy, etc. I will be looking around for something better, as ya'll mentioned, and just get away from them.
Their "customer service" definitely bites.
Again, thank you!!!
Seriously, though, don't you think it's time you actually spoke with an agent? You don't even know if you're paying too much!
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by Mr. Bill
Seriously, though, don't you think it's time you actually spoke with an agent? You don't even know if you're paying too much!
Mr. Bill (as usual) is right. And contrary to what some people think, an agent will not cost you a penny... but might save you a dollar (times a few hundred.) There are lots and lots of good agents in every part of the country. Ask your friends for a referral.
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by al3
Mr. Bill (as usual) is right. And contrary to what some people think, an agent will not cost you a penny... but might save you a dollar (times a few hundred.) There are lots and lots of good agents in every part of the country. Ask your friends for a referral.
Al
I will! I promise! And yes, I should have done that to start with.
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by Dave020
$98 a month for 30k of term life? Seriously? I have clients with $1.5MM 20-year term at under $75 a month. Yikes!
I took that 98 to mean it was the premium due for all of the months that her account was not charged. If it was for just one month, then indeed it would be "scarry."
Winter
------------------------------------ Spending Our Way to Prosperity
Re: Can life ins be cancelled with no notice?Go to Top
I can't believe ya'll are beating up on Globe Life, unless you don't know anything about them. She has a $30K WL policy and $98/mo. may be right on target for his age, health etc. I am cashing in some Globe life policies this month that should have been claimed several years ago, and they have been excellent to work with on these items.
All insurance companies have glitches. I am only posting here, because you are leading her to believe that she made a big mistake, which is not true. Globe pays on claims like everyone else and a lot better than some.
Re: Can life ins be cancelled with no notice?Go to Top
This is taken directly from Matrix Direct's web site about us section:
" We created Matrix Direct in 1995, because people told us they wanted a better way to secure important [COLOR=#0066cc]term life insurance[/COLOR] protection. They were right; finding high-quality term life insurance coverage for your loved ones should be simple, straightforward and convenient.
Matrix runs TV ads promoting term life insurance sales. Can't imagine why anyone would assume that it was term insurance considering the above?
100 bucks a month for perm, maybe if he's table rated or over 55. Seems high still. We're only talking 30k here.
Last edited by Dave020 : 10-02-2008 at 02:32 PM.
Reason: spelling
Re: Can life ins be cancelled with no notice?Go to Top
Originally Posted by Dave020
Can't imagine why anyone would assume that it was term insurance considering the above?
If it's perm, then certainly it's likely in the range depending on age and rating level. That is why I asked if it was term for $98 a month. Seems way out of range.
She identified the carrier for the policy as Globe, a well known final expense company that sells primarily WL.
Re: Can life ins be cancelled with no notice?Go to Top
But she bought it through Matrix Direct, a well-know term agency here in California.
It may be a perm product. However the selling agent is not known to sell perm products. If it's perm, and the price is fair, ok, no biggie.
I looked back over this thread and the only one complaining about Globe was the OP, because she was not getting and response (nor was Matix Direct) to repeated inquiries regarding the status of the policy and premium payments. Everyone else was basically saying to run it by another agent.
Re: Can life ins be cancelled with no notice?Go to Top
I'm not familiar with all the acronyms, but I'm pretty sure there was not a number of years involved so I guess it's "perm"? Sorry, probably sounds stupid, but I am a complete novice about this stuff. On the original quote from matrix, it says the product is "Globe Adult Life 0 Year Level Term".
Rate Class: Standard
Riders: None
Age: 59
The impression I got from Matrix was that they were kind of a clearing house...a place to get quotes from numerous companies and advice on your own circumstances. They do the quotes; you make the decision, then they just turn it over to the company you select. I'm sure they receive something for that.
The Matrix guy was actually very helpful, and explained things I didn't know, so I was pleased with the experience with them.
As has already been mentioned, I was wildly upset with Globe for completely ignoring me. I am THEIR customer. I have been working for 33 years, and if there is anything I have learned, it is that customer service is the most important aspect of any business. Isn't it?
Even though they have supposedly fixed this, and re-instated the policy, I will most definitely look elsewhere, and they will lose my business due to their deplorable treatment of me for THEIR mistake! When the lady called to say it was being fixed, it was mostly to be sure I knew they were taking the 3 months premium out tonight, so I would be aware. Ha! My husband apparently wasn't even covered during most of that time, but they are darn sure gonna take this money AFTER the fact. I don't recall her even offering an apology. She just said they didn't know what happened; it wasn't my fault or my bank's, and it's fixed now, so get ready - they are taking the money tonight.
I know it won't make any difference, but the only reason I called Matrix for help with this problem was just to let him know what kind of company they are. Maybe they are great to 99.9% of everyone (I hope so), but they sure dropped the ball with us in a big way. There is absolutely no way anyone is that busy that it took all those calls and e-mails just to get this supervisor to call me. Even if they didn't have an answer yet, she should have been on the phone to me right away to let me know she was working on it, or something.
I would be glad to know of products ya'll know about. Here are more particulars on my husband:
Age: 59
6' 217 lbs (40 of which is a beer gut, ha)
Smoker
No known health problems; no high blood pressure or cholesterol (that gets checked when we give blood).
Had a DWI stop 8/18/05; dismissed
The DWI stop was why the Matrix guy steered us toward the 30K with Globe as he said they don't do a check or something at that level (?).
It has been over 3 years NOW, if it is from the stop date. If it's from the dismissal date, we will have to wait a bit longer.
Feel free to tell me anything about companies, policies, whatever.
Re: Can life ins be cancelled with no notice?Go to Top
Mabye take a look at a local independent agent in your area. They too can present many options.
Part of the cost problem may actually be the size of the policy. Smaller amounts tend to be priced higher per thousand than larger. You might find 100,000 to be cheaper than 30. Your husband's smoking will increase the cost with just about everybody. However, there are some carriers who are a bit more tobacco friendly.
If the DUI was dismissed, I don't know if it would be on record or not.
Have you actually seen a policy yet? The quote is for standard? Not standard smoker?
Everybody in this business is usually pretty nice. However, nice isn't always the best thing for you. You might need to talk to someone who is a littlemore straight forward and that could mean hearing negatives along with the positives.
Can life ins be cancelled with no notice?
We created Matrix Direct in 1995, because people told us they wanted a better way to secure important 
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