I Got A Letter From My Old Insurance Company Today Telling Me, Again, I Ain't Got No Life Insurance

But the question I asked them, "How did this happen?", wasn't answered.

Nor did they give me a break down of the cost of insurance and the administrative costs.

I got a phone call from the insurance company on October 23, 2008, you can read about it here.

On October 27, 2008, I received this letter. I just decided that once again I had bet on the wrong horse and to stomach my losses.

I was telling this to some friends and they suggested I write the company and ask for a breakdown of costs and where the money went. I did.

I sent Blewis@cslic.com, the president of the company, the following:

In reviewing correspondence I have received from CSLIC since 2003, my life insurance cash value has decreased each year, from $5800 in 10/2003 to $4700 in 10/2004, to $3800 in 2005 to $2000 in 2006 to $300 in 2007 to zero. How did this happen? How did this happen? I trusted you just as I trusted Andrew Jackson. Please send me a copy of all the information you have on policy in your files.

When I bought this policy, the agent told me I pay premiums for 7 years and then the policy pays for itself. Premiums were $1500 a year, $10,000 at the end of seven years.

Now, what I think I am being told is that $10,000.00 of my money that I paid in as premiums, and that the insurance company invested since 1991 is all gone. Look at the following two graphs:


Here is the letter I received from Central States Life Insurance Company this afternoon: (click on it to make it bigger).

Money quote:

Central Security Life assumption reinsured the Andrew Jackson Life policies effective January 1, 1993 after the company was placed in liquidation by the State of Mississippi. The guaranteed interest rate on the contract was lowered by court order to 5.01% to comply with the statutory requirements of the life and health guaranty association for your state. There was also a mandated rollback of cash value (class 3 claim) at the date of the assumption which was listed on your assumption certificate.

In plain English that says, "Sorry sucker!"

Central Security Life Insurance Company, www.cslic.com, Richardson, Texas.