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Thread: Life insurance policy went up when I turned 81. What the Heck!!!

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    Default Life insurance policy went up when I turned 81. What the Heck!!!

    Last month my Bank calls and says my checking account is over drawn 100.00Dollars.... I run over to bank and explain to them that it is not possible, I should have plenty money....I was astonished to see what was going on... I got this life insurance policy a little over 20 yrs ago In 1990 when I was a young Buck Of 60.And then until now have been paying 120.00 Dollars a month. I turned 81 last March and this month of October they with drew 920.00 Dollars...I immediately called the Insurance Company and they told me Sorry(ofcourse) but since I turned 81 it went up.. They Never notified me of the up in payment and I certainly never signed anything..As far as I know it was until i Died....I live in California by the way...any suggestions would be helpful....



  2. #2
    Senior Member Level 8 Mark Rosenthal's Avatar
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    What kind of a policy did you buy? Was it a term plan?

    I'm thinking you had a 20 year term plan.
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    It is called do not buy term insurance if you want coverage to last your lifetime or do not buy UL and make the minimum payments. Term is a bet by the insurance company that you will not die before the policy expires. Most term coverage is not renewable past age 80.

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    Senior Member Level 3 Dan Williams's Avatar
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    Bummer...can an 80 year old even think about getting a more competitive new policy?

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    And if you don't understand your policy, check with an agent. Has the agent who sold you the policy ever contacted you? If not, ask friends & family if they know a good agent.

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    Even if it was a 20 year term, it's pretty crappy of the insurance company to just auto bill you and assume you're renewing the term. Granted, there might be a clause in the original policy that explains what happens when you turned 81. Think of an insurance policy as a contract, because that's exactly what it is. We agents call the app, the agent's report and all riders that go into the policy the "entire contract."

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    Yes, I would expect the company to just automatically bill the policy holder. The only way to keep the policy in force is for the premium to be paid. That is all that is required. If the policy holder pays the premium the company is happy and if not it lapses as was expected.
    Last edited by xrac; 10-02-2011 at 02:29 PM.

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    Life insurance helps you in many ways. It could pay for residual medical bills, funeral expenses, and credit card debts, and enable the surviving spouse to have some time to find a job or to retire comfortably.The most important kinds of insurance policies are long term life insurance and permanent life insurance. There are various variations within these.

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    Whoever sold you a term 20 at age 60 must have not known what they were doing or they must have knowingly sold you something they shouldn't have. Otherwise, they might have presented a whole life policy to you, but you decided to go with term. I've had that before. Some people just don't see the value of a policy if it costs a lot. They can't seem to get past the price. truth is that the value of the policy all depends on what you need to use it for. If a client wants the policy to last until their death, they should purchase permanent insurance. I like Whole Life, even if they are 60 and the premium seems high. Good news is you can probably convert your current policy to a lesser amount of permanent insurance. I don't like UL, but that's just me.
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    Sorry to hear about that. It's something that really has to be considered if you're thinking about taking out a term life insurance policy. It may look like it's the better option at the time, but it might come back to haunt you at some point in the future. I hope you can get the price of your policy reduced, good luck with it..
    Last edited by Insurance_Info; 11-20-2011 at 10:30 AM.

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