Reinstatement at U.S Financial Life Insurance

Discussion in 'Life Insurance Forum' started by dougbma50, Sep 7, 2017.

  1. dougbma50
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    dougbma50 New Member

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    I'll try not to make this too long. For 14 years I have paid my yearly premium on time, no issues. Then this past year I accidentally sent the payment (on time) to my wife's policy. I assumed once they could confirm (30 days later) what happened that they'd turn my policy right back on. No such luck. I have discussed it with customer service and their supervisors and all they will say, over and over, is "it's in underwriting and takes 90-120 days". I have explained to them that I did my part and sent the forms right back in and called the doctor to be sure there were no delays. They sent the request to Backus and they turned it around in a few days. USFLI had the results back in under 30 days. Now they are saying "it's in underwriting and will take 90-120 days". I can't determine is this is just a scam and it will sit in a tickler file to be looked at in 120 days or perhaps in 120 days they'll say "it'll be another 90-120 days". Because I'm 14 years older, to get a new policy would be about $500 more per year which I'd rather not pay for no reason at all. Any thoughts? Am I just wasting my time waiting and should bite the bullet and get a new policy elsewhere and pay the money? I'm not sure if it's just USFLI that are completely sleazy or if it's the entire industry? And what if something did happen to me, I feel like that John Grisham book and that my wife would never be able to collect anyway. Ok, in fairness, they win the law suit in the John Grisham book but I think that was a fluke.

    Any advice would be greatly appreciated.

    Best regards,
    Doug
     
  2. WinoBlues
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    WinoBlues Guru

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    First, are you dealing with US Finacial or an administrator? I do not believe they are writing Life Insurance any longer. That block of business may have been sold. I still service my USF clients however, I can not remember who I call at the moment.

    If you had or have their 30 year guarantee plan you really only have a16 year plan if you are going to compare. And it may be a good time to re evaluate if the plan you have is going to do what you want it to. If you are doing a reinstatement you very well may have lost your guarantees and start a new contestability period. I do not know this just something you should go over with your agent.

    Speaking of your agent, What does he or she say?

    takes 90-120 days - That sounds like they are assuming getting APSs (doctor records) Once they have _all_ the information getting an answer should be much shorter. Make sure you give them all the doctors information so they do not have to go for different records after waiting for the first set.


    ""Then this past year I accidentally sent the payment (on time) to my wife's policy."" Are these Universal Life policies? If so you really want to check the annual statements to see how they are doing.

    You will probably start getting PMs form people wanting to quote you. Make them check on the status of the current plan first so you know if it should be replaced or not.

    Not a scam, They have to follow the rules.

    Good luck,

    Lee
     
  3. pfg1
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    pfg1 Guru

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    I don't know anything about that company, and if they will reinstate you or not. 90-120 days seems long to me, most cases I do are done in 30-45. Maybe they are setting long expectations just in case. Not sure if you have term or ul, but I hope you get re-instated if that is what you want.
    It would probably be prudent to investigate what other covg you could get just in case.
     
  4. dougbma50
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    dougbma50 New Member

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    Thanks for all the info Lee. I had a 20 year $1M policy at $990 annually. I am 14 years in. My wife has the same policy but our are individual. As for what type? I'm honestly not sure, I just know 20 year $1M but there is no value if I were to terminate it early. Not sure if that helps. I did call my "insurance guy" who set up the policy and he said "don't bother with reinstatement, they will ultimately deny it". I was initially going with that but then realized, if I get reinstated he gets nothing but if I open a new policy then he gets paid so I then questioned if it was worth trying to do the reinstatement and ultimately decided to move forward with it. I know that when I call in the message says "an AXA company".

    I could just start a new policy but I'm getting quoted about $1440 annually for a 10 year $1M and I believe 20 year $500K was about the same. So, that's about $3000 more than I am paying now, however, that's todays rates. I'm 50 so if I wait 6 years to start a new 10 year policy then perhaps the price goes up to say $1800 annually and if so then becomes closer to a wash. not sure if that could be estimated.

    ----------

    Thanks PFG. I tried Amica and SBLI and they are both quoting around $1450 annually for a 10 year policy. They suggested that most insurance companies will be the same and I'm wondering that if they're not and it's a company I've never heard of then perhaps that's a more risky route.

    ----------

    I forgot to add that I am calling the number on US Financial Life's web site and speaking with whomever answers the phone.
     
    Last edited: Sep 8, 2017
  5. WinoBlues
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    WinoBlues Guru

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    If you like send me your contact info at WinoBlues at Gmail. com and I will do a three way with you to the company. Your agent should have done this. It should take about 15 minutes.

    You are correct that the agent will not get paid again if you reinstate. That does not mean he is wrong on the recommendation though. Do you want/need coverage longer than 6 years? If the agent has kept on touch with you and serviced you over the last 14 years give him a shot. If not, don't.

    I am only licensed in a dozen or so states so I am not offering to sell you anything. Just offering a few minutes of help.

    Lee
     
  6. dougbma50
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    dougbma50 New Member

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    I wanted to provide a small update. I called again this morning and was told that I have been "uproot" and that they are accepting my reinstatement. Lee told me that was a term he was not familiar with so now I'm thinking it must have been "approved". It so clearly sounded like uproot. Anyway, they said the letter is in the mail which will identify how much I need to pay. I am wondering if they have now adjusted my premium. We'll find out hopefully by the end of the week. Also, I told them I was told I would have to get blood work done again and when will that happen and they said "no, that's not needed, you've been accepted". Perhaps sometimes they do and sometimes they don't.

    Anyway, seems like they're not so bad afterall.

    Thanks everyone for your comments.

    Best regards,
    Doug
     
  7. David Block
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    David Block Expert

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    Congratulations on the reinstatement. USFLI is no longer writing new business and as Lee suggested, this may be an excellent time for you to consider your future needs for insurance. Over the past 14 years, I am certain your financial picture has changed and that the same can be said for the future. Do you have a permanent need for coverage? If so, what will you do 6-years from now? There are many questions that remain unanswered that are part of any solid financial plan. I believe what most are saying here is that having gone through this reinstatement process and knowing you have the coverage should provide you with some peace of mind. However, if does not secure your future and that is where a good broker/planner should help you focus.

    Best of luck for your future planning.
     
  8. Ronnie Carter
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    Ronnie Carter Guru

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    I would hate to get uprooted. Sounds painful for a guy over 50!

    All kidding aside, they should bill you the unpaid premiums plus current month, at the same rate you paid before the lapse occurred. You will likely have a new two-year contestability period, but that is only a problem if you materially misrepresent something on the application and die within two years.

    It's fairly clear that you had a term policy considering the face and premium you specified. You might want to think about the future, in terms of permanent insurance that will pay when you die at 92, for example. The premiums are still reasonable at your age.
     
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