I received this story from one of our visitors:
I thought I should post it here:
A HARD LESSON - LIFE INSURANCE
UPDATE FROM READER:
I spoke with my life insurance agent from Industrial Alliance.
He indicated that even though I defaulted on my life insurance policy, I had 120 days to make up my payments and submit a SHORT health questionairre in order to reinstate my life insurance policy.

This is good news as I thought I would have to go through the whole approval process and get a new life insurance policy.

So... as it stands, because I'm still within the 120 day period, I can reinstate my existing policy by paying the outstanding amount and submitting a short life insurance questionairre.


PREVIOUSLY...
I learned about T100 or Term to 100 when I was about 30 years old from an life insurance agent who lived across the street. This fellow had been selling life insurance for years and was pretty successful with it.

I liked the concept of the policy in that I would have the same premiums for the next 70 years. The rate would never increase and I wouldn't have to get another medical for the life of the policy.

That was about 12 years ago when I purchased that Term 100 (T100) life insurance policy from Industrial Alliance Pacific, for both myself and my wife. At the time we were around 30 years old, making these policies very cheap and easy to pay for.

Just recently I have been under an enormous amount of stress and pressure with the task of rebuilding my business. I've been so tired and exhausted (and admittedly short of funds) that I forgot to remit my payments to Industrial Alliance Pacific.

Two months passed quickly as I've been working 7 days per week, completely immersed in my business.

MY POLICY WAS CANCELLED BECAUSE OF NSF
A few weeks ago I got a letter from Industrial Alliance Pacific saying that my policy was cancelled because of lack of payment!! I was horrified, but under the circumstances it seemed par for the course. Rebuilding my business has sapped all the money, emotional strength and physical energy that I've got.

I have paid my premiums faithfully every month for the last 12 years. The insurance company has been kind enough to accept my payment each month and send me a statement from time to time.

I HAVE TO REINSTATE MY POLICY- WITH CONDITIONS
I contacted my life insurance agent who indicated that while I can reinstate my policy and my premiums won't increase, I also have to answer a few medical questions to UPDATE my policy.

Here's where the problems come in..
Just a few weeks ago I went to the doctors to get a check up. As I've been feeling exhausted all the time I thought I should get a check up to make sure that my health is good.

The doctor reported about a week later that I had high cholesterol. High cholesterol?!!

I've also gained about 50 pounds since I took my policy out. So, being overweight, and having high cholesterol all of a sudden makes me a higher risk. And as such, my rates will probably be increased as a result.

These are health problems that I wouldn't have had to report if I had have kept up my payments to a current level.

HIGH CHOLESTEROL AND BEING OVERWEIGHT
Being overweight and having high cholesterol seem to go hand in hand. It bothers me that my weight problem and high cholesterol are starting to cost me more money.!!

Being overweight and having high cholesterol are not things that can be fixed over night. It's not like I can lose 50 pounds and get my cholesterol level to a proper level before my next medical in a few weeks. I'm going to be stuck with higher rates monthly for the next 30 years.

PAY ATTENTION TO PAYING FOR YOUR LIFE INSURANCE POLICY
Normally I would have paid my bills on time and current. I didn't really know about the consequences of not making payments for two months to Industrial Alliance Pacific. Honestly, I didn't know how long the insurance company would take before they cancelled my policy due to insufficient funds. Was it two months, three months? I didn't really think about it at all.

Because of that lack of financial management, I came face to face with my health problems due to overwork and high stress. I wouldn't have had to really think about those if I had made my payments on time to Industrial Alliance Pacific. (I have been thinking about my health lately, however, just not in relation to my insurance policy)

Insurance policies are those quiet services that take money out of your pocket each month, but you don't really pay too much attention to.

I LEARNED FROM THIS EXPERIENCE TO PAY ATTENTION!!

Contributed by: a visitor to www.quality-ins.com

Articles from March 2007
More articles from Year 2007

Comments (0)