To make a long story short, I bought a term policy 21 years ago that auto renewed on 1/11/2019 and the premium went from $46 per month to $564 per month. I did not get the notification letter although I just checked with the insurance company and they said they sent it in November of 2018. My address was different when I bought the policy but they said they sent it to my current address. It has been a auto pay all this time since the renewal but when I called them they said the only thing they could refund is one month. Do I have any other recourse to get more of that money back (approximately $10,000). Please don't respond what an *** I am for not closely checking my bank statements every month. Any other feedback will be greatly appreciated.
Fell asleep at the wheel....
- Thread starter fmonte555
- Start date
- 11,289
Only one possible idea comes to mind.
If you convert the term to a cash value life insurance policy, you may get all the past 12 months of premiums credited to the new policy. Of course, you'd need to pay the higher premiums for the new policy, but you'd have the last 12 months credited (typically).
That assumes that you could convert the policy in the first place. Often you cannot past the initial level term period.
If you convert the term to a cash value life insurance policy, you may get all the past 12 months of premiums credited to the new policy. Of course, you'd need to pay the higher premiums for the new policy, but you'd have the last 12 months credited (typically).
That assumes that you could convert the policy in the first place. Often you cannot past the initial level term period.
- Thread starter
- #3
- 11,289
Two things you can still do:
1) File a complaint with your state's department of insurance
2) Contact an attorney (who would ask you if you filed a complaint with the state DOI)
Whether that'll work or not, or if it's worth it with an attorney... is anybody's guess.
1) File a complaint with your state's department of insurance
2) Contact an attorney (who would ask you if you filed a complaint with the state DOI)
Whether that'll work or not, or if it's worth it with an attorney... is anybody's guess.
- 4,585
I would think those 2 would be warranted if something other than the original contract purchased had occurred. my guess is the original policy mailed & any other illustrations at time of purchase or potential renewal documents would have shown the cost of continuing to renew the policy after the initial level premium period.
I have done a couple of similar dumb things myself like this with auto renewal subscriptions, failing to shut off previous vendors after I changed to new companies. EFT is so convenient for all of us..................until one of these times
completely sucks, but I see no way out of it as they provided the coverage as outlined in the policy that was purchased & was considered a value at the time.
was there an agent involved or communications with the agent where they failed to take action?
I think the attorney / DOI choice is an either-or. The DOI will back out of helping you if you lawyer up.
- 25,002
Yup!
They still are. If he dies in the next 5 minutes will the beneficiary ask for the $10,000. Or the $100s of thousands?
However, very early in my career I had one very similar to this. Except the the insured was full of chit and lying. In my opinion. Premium was $500mo, in 1986 dollars, at the end of the first year he said he did not realize he was insured and the drafts were going through. Claimed the policy was not delivered. John Hancock rescinded the policy and refunded all his premiums.
- 2,625
Agree. Neither the DOI or an attorney is going to find that the insurance company did anything wrong.
- 10,337
I have mixed feelings about these types of situations. Obviously the OP has no real recourse at this point. And obviously everyone should read all letters sent from the insurance carrier. however...
How many agents are actually telling term clients they need to cancel coverage after 20 years to avoid a 1000%+ premium increase?
Many consumers who own term policies believe the opposite happens, that they must notify the carrier to continue premiums... not to cancel premiums once their term policy "ends" (in their mind). Then there are the agents that dont even know this...
I know Im not the only one on this thread to have run across this many times before in the field. I got a phone call just last month from a client with an old term policy (not sold by me) who received a premium increase notice and wanted to make sure they actually were reading it correctly. This guy is a white collar business owner, someone I would consider much more savvy of an insurance consumer vs. most. But he could not believe they would just automatically bill him for $15k without him signing off on it... I explained that he signed off on it initially... his exact words were "bull sh*t" nobody told me that sh*t!! And I believe him, because ive heard it many times before.
How much in premiums do you think carriers take in on expired term policies that consumers thought Premiums had ended on? I bet its a lot more than most think. At a 1000% premium increase, all they need is 1 and its the same as 1000 new sales....
Obviously multiple letters are sent out. And we all know clients love to "not receive" letters from insurance carriers. But it still is an extremely "consumer unfriendly" way to do business imo.
How many agents are actually telling term clients they need to cancel coverage after 20 years to avoid a 1000%+ premium increase?
Many consumers who own term policies believe the opposite happens, that they must notify the carrier to continue premiums... not to cancel premiums once their term policy "ends" (in their mind). Then there are the agents that dont even know this...
I know Im not the only one on this thread to have run across this many times before in the field. I got a phone call just last month from a client with an old term policy (not sold by me) who received a premium increase notice and wanted to make sure they actually were reading it correctly. This guy is a white collar business owner, someone I would consider much more savvy of an insurance consumer vs. most. But he could not believe they would just automatically bill him for $15k without him signing off on it... I explained that he signed off on it initially... his exact words were "bull sh*t" nobody told me that sh*t!! And I believe him, because ive heard it many times before.
How much in premiums do you think carriers take in on expired term policies that consumers thought Premiums had ended on? I bet its a lot more than most think. At a 1000% premium increase, all they need is 1 and its the same as 1000 new sales....
Obviously multiple letters are sent out. And we all know clients love to "not receive" letters from insurance carriers. But it still is an extremely "consumer unfriendly" way to do business imo.
- 4,585
Ironically, 20 years ago the renewal premiums were not as dramatic after the level period. But in the ever increasing pressure by agents to be "cheaper, cheaper, cheaper", carriers 1 by 1 starting lowering their term rates & reducing conversion privileges to make the level term premium cheaper............but at the opposite end of the spectrum is now the massively higher renewal rates after the level period & the extremely short, if any, conversion privilege. And if convertible, it might only be convertible to the carriers worst product available. But it was cheaper for sure than the carriers with robust conversion privileges & smaller jumps in premium.
The irony is that if the carrier cancelled at the end of the level period, some that still wanted the policies might also be upset. For young people that bought a 10 year term at age 25, the increase might be not a huge deal, but a 65 year old renewing in year 31 of a 30 year term will be astronomical.
Few, if any agents, that wrote the original policy are still in business to proactively service the policy, try to rewrite to new term before the level premium expires or convert before the conversion privilege ends
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