Thursday, October 23, 2008

What Happened? My Life Insurance Policy Just Went South, In A Hurry!

I just received a phone call from Deanza Pearson of Central Security Life Insurance Company of Richardson, Texas.

In 1984 I purchased from Andrew Jackson Life Insurance Company of Jackson Mississippi, the agent was Lindsey Head, a $100,000.00 life insurance policy. I paid premiums of $1500.00 a year for seven years then the policy paid for itself.

In early 1993 Dan White, the owner of Andrew Jackson Life Insurance Company, bankrupted the company. The state of Mississippi stepped in and took over the company. My policy ended up with Central Security Life Insurance Company.

This morning Deanza Pearson of Central Security Life Insurance Company called me and told me that to keep my life insurance I would have to start paying a yearly premium of $2,867.19.

This year.

Next year it will be higher.

The current economic crisis cost me my life insurance.

Now, if I were a betting man, assuming I live another 20 years, do I want to spend $57,348.80 to get $100,000?

Or, am I better of buying term and spending $20,000 to get $100,000?

Or am I better to keep my money and try not to get angry at those greedy SOBs who robbed us all?

Hey, Washington, I could use some of that bailout money to pay my life insurance premium.

Heck, I would be happy with just a portion of the clothing allowance.


Anonymous said...

sorry, Jim

The CDM said...

The real question is, "What does your wife say?"

Anonymous said...

My guess is that this is a Universal Life policy and the interest rate assumption given to you at the time of purchase didn't hold up so now you have to kick in more money to keep it pun intended. You might be able to do a Life Settlement if you are over 65.

Contact a QUALIFIED Life Insurance agent who can walk you through your options, although from what little information you gave there isn't many.

If it is any consolation, which it probably isn't, a lot of people got caught in this with policies from the early 80's when companies were illustrating 12, 14, 18 % on UL policies.

Tom Russell said...

Have you sued or has anyone reding this sued the Central Life. If so, please post the name of the lawyer.

Raizu said...

Many companies are offering their services for health insurance plan, but some of them are just scams. You should insure yourself in a company that is well known for its policies. There are many companies that target you until you sign up for the insurance plan, and leave you alone after you get registered with them. Sometimes, the hidden charges leave you alone between rocks as the insurance rates get increased and ultimately the benefits become meaningless in front of such a high rate. One can judge such kind of scams by asking the life insurance questions carefully before joining any type of policy.