So, I used to work for a captive carrier. Left a little over 2 years ago, and am now opening up to my old clients as my non compete has expired. While visiting a past client today and reviewing her policies, she has been duped by another agent within my past carrier in a few ways.
The first, she has had LTCI with them since 1999, now approx $140/day, 1,095 days, 0 day elim, 3% compound, 100%hhc. Premium is cheap, around $70/mo. The agent working my orphaned policy holders called the home office, bumped her elim to 90 days, then sold her a short term care policy to cover days 0-90 at $190/day, costing her an additional $135/mo premium.
On top of that, he 1035'd a participating WL which was paid up, face was +-$75k with 33,000 csv. He moved it to an non par, level DB IUL with a $55k face, only guaranteed for 15 years. Projected to lapse at 82.
I also found carbon copy suitability paperwork for an annuity of $25k, which she said she never received the policy, nor remembered applying for it. This was only last year. I would normally call the company, but as this is my prior captive carrier, I don't want to alert their home office yet, as I'm working on seeing what options there may be to better the situation.
She lost her husband fall of 2012, and all of this happened a couple months later so she said she was too stressed to be doing all of this, but the agent made it sound like he was doing maintenance to her existing policies. She wants to file a DOI complaint, but I told her to sit tight for now to see if we could fix, and if not we could go from there.
What would you do in that situation? I figured the best thing to do was to try and shop everything, and hopefully solve it that way. Although I do feel that agent deserves a DOI complaint, as it would be validated.
The first, she has had LTCI with them since 1999, now approx $140/day, 1,095 days, 0 day elim, 3% compound, 100%hhc. Premium is cheap, around $70/mo. The agent working my orphaned policy holders called the home office, bumped her elim to 90 days, then sold her a short term care policy to cover days 0-90 at $190/day, costing her an additional $135/mo premium.
On top of that, he 1035'd a participating WL which was paid up, face was +-$75k with 33,000 csv. He moved it to an non par, level DB IUL with a $55k face, only guaranteed for 15 years. Projected to lapse at 82.
I also found carbon copy suitability paperwork for an annuity of $25k, which she said she never received the policy, nor remembered applying for it. This was only last year. I would normally call the company, but as this is my prior captive carrier, I don't want to alert their home office yet, as I'm working on seeing what options there may be to better the situation.
She lost her husband fall of 2012, and all of this happened a couple months later so she said she was too stressed to be doing all of this, but the agent made it sound like he was doing maintenance to her existing policies. She wants to file a DOI complaint, but I told her to sit tight for now to see if we could fix, and if not we could go from there.
What would you do in that situation? I figured the best thing to do was to try and shop everything, and hopefully solve it that way. Although I do feel that agent deserves a DOI complaint, as it would be validated.
