A Life Insurance Agent from Colorado is visiting many states in United States where Keralites (Malayalees - people from Southern India) lives and trying to sell Life Insurance policies in false promises. He focus on prayer group contacts and try to sell policies by hiding the facts.
Please review this compliant letter a customer send to the agent. Please check your insurance policy to see all the details what agent told you is mentioned in writing.
Kind Attn:
As per the discussion you had with the undersigned we agreed to purchase the Life Insurance policy. It was been told to us that the Life Insurance policy has GUARANTEED Death Benefit coverage of $250,000 till ********* reach age 90 years. Also after 30 years we do not have to pay any premiums.
But on the policy certificate which was send to us the GUARANTEED Death Benefit is $250,000 only for the first five years. After 5 years the death benefit is only $150,000. Also the yearly guaranteed premium is mentioned as $ 1,716 till 30 years and next 25 years it is $1,644. It seems that we may have to pay premium for next 55 years. It is not what been told to us.
Also the 30 years the GUARANTEED Cash Value developed is $54,469 where we have paid $51,800 in premiums. Hence the difference is only $2,669. This was not the amount what is been told to us.
We have a mortgage loan of $300,000 for the next 30 years. That is the main reason we have decided to take a Life Insurance policy which gives a guaranteed death benefit of $250,000 atleast for next 30 years. And it was been told to us by you during the sales conversation. But in the Policy Certificate it is mentioned GUARANTEED Death Benefit for first 5 years only. It was not what was told to us. We made the monthly premiums for last one year based on the assumption that we have Guaranteed Death Benefit coverage of $250,000 for next 30 years.
Also we have noted that after 90 years the policy will lapse. And we may get only $117,000, but we may have already paid $ 92,580. The difference is only $24,420 which is a very less percentage of return when considering an investment of $92,580 for almost 50 years.
Also the agent told that we have to pay only for 30 years by that time we may have paid $ 51,000. We came to know that if we stop paying after 30 years as told by agent each month the policy will take a loan from the money we paid. So if there is any claim will get only the loan reduced from it. But we came to know that in that situation ultimately policy will get lapsed when the cash value gets over and we may not even notice it.
Hence we request that our Death Benefit should be GUARANTEED for $250,000 for next 50 years as what was told to us and we agreed.