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At age 83, person was convinced to purchase a Custom Universal Life Guarantee policy for $200,000. Premiums Very Very Very high, health needs have changed drastically in 5 years. Now age 87.


Needs 24 hour care and wants to convert this policy. Can anyone help including legal advice?


This policy was unsuitable, unacceptable and I believe they took advantage of an 83 year old trying to help her church

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If longterm care means Medicaid and the policy has cash value, then it will need to be cashed in to help pay for care or prepay a funeral. What this person needs to do is contact the insurance company and ask for a report showing what her cash in value is. I doubt in 5 yrs she has accumulated enough to pay for her care.

I am surprised this kind of policy was offered. The premiums go up as you age. At 83 her premiums must have been extremely high. We had a similar policy on my husband but cashed it in when the kids were grown. The premiums would have been extremely high by the time my husband retired. Husband had rolled over a college policy. It bought 60k coverage. It would have paid our Mortgage and gave me some money to help me get back on my feet. They are not good policies when the economy is not good and interest rates go down.
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Virginia62 Sep 25, 2018
thank you for responding, I'm sending a letter to the compliance department first , then BBB , and then consumer affairs .. I will keep you posted on how the Insurance company handled the situation , I may even take it to an Elder Lawyer … but thank you again for responding
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Call the state Division of Insurance. Whole life insurance policies can be cashed n, but they are never for the face value.
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Virginia62 Sep 25, 2018
thank you I will add them to the list of others that I am sending a letter of complaint out to .. will keep forum updated
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I'd urge you to call the company that sold the policy. The insurance industry has become VERY complicated. Policies have riders that offer additional coverages so it is impossible for anyone here to accurately respond. Some policies waive premiums when the insured needs long term care. Others allow you to access the cash values without penalties if the insured needs long term care. The actual policy spells out the coverages --- though you may need help to interpret it. Good luck.
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Virginia62 Sep 25, 2018
thank you for responding , I am contacting the insurance company as a few other people .. will keep the forum updated
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