What Type Of Policy?

[Angio333]

I am fully licensed, but not currently working insurance. Someone I work with asked a insurance question that I cannot answer.

The person involved was a her friend of a friend. So, I only have the information below.

It sparked my interest, so I was wondering how this could happen, or what type of policy it was.

The beneficiary only recieved a little over $300.00 as the death benefit. From what I'm told the $300.00 is what was left over after fees "and everything else" was taken out.

The insured was in his 70's and had the policy since he was 17 or 18.

From what I'm told, all premiums were current. Also, it did have cash value, but there were no outstanding loans.

 

[Mark]

I am fully licensed, but not currently working insurance. Someone I work with asked a insurance question that I cannot answer.

The person involved was a her friend of a friend. So, I only have the information below.

It sparked my interest, so I was wondering how this could happen, or what type of policy it was.

The beneficiary only recieved a little over $300.00 as the death benefit. From what I'm told the $300.00 is what was left over after fees "and everything else" was taken out.

The insured was in his 70's and had the policy since he was 17 or 18.

From what I'm told, all premiums were current. Also, it did have cash value, but there were no outstanding loans.

Did the policy have any riders attached to it, that were paid out. Like a D.I. rider or C.I. rider?

 

[CHUMPS FROM OXFORD]

Strange. What "fees" could there be? If the policy was in good standing, the death benefit would tend to increase (WL).

Of course, if it was a UL getting ready to implode...that's another story.

Spellcheck was not used in this post.

 

[Angio333]

I don't know if there were any riders.

Did they have UL back then?

 

[Mark]

Maybe the client needs to call the insurance company and ask them what happend, if the client is really clueless what happend. I don't think we are getting all of the story and by the time the story went throught the grape vine, I bet it changed a lot.

 

[EdHead]

The beneficiary only recieved a little over $300.00 as the death benefit. From what I'm told the $300.00 is what was left over after fees "and everything else" was taken out.

The insured was in his 70's and had the policy since he was 17 or 18.

From what I'm told, all premiums were current. Also, it did have cash value, but there were no outstanding loans.

It could be an old "Industrial" type policy or an old 5 or 10 cent policy. I have done policy reviews with people in there 70"s who have these policies that there parents took out for them when they were kids. I have run across policies with a $300 death benefit.

 

[Newby]

It could be an old "Industrial" type policy or an old 5 or 10 cent policy. I have done policy reviews with people in there 70"s who have these policies that there parents took out for them when they were kids. I have run across policies with a $300 death benefit.

You're exactly right. In the funeral home, we get more policies with a face amount less than $500 more often than over $500 if the person is over 75 years old.

Many times they have loans against them too.

Nothing at all unusual about that case. Today we $500 policies as almost a nusance policy. But when we are in our 80's (I'm 48 now) our kids will be laughing at the $10,000 and $15,000 policies. It's called inflation.