72-Year-Old Is Told By Life Insurance Company That Her Policy Is Worthless Because She’s Paid For 40 Years
We are all encouraged to get life insurance for that fateful day when we kiss the world goodbye but our loved ones are left behind.
Paying into cover every month is a habit a lot of us know and we do it thinking it will look after those we care about when we reach that final curtain.
But imagine if you get old and you are told, well, your insurance is almost up. Now, that’s enough to put you into an early grave!
And this is exactly what happened a 72-year-old woman, who’d been paying her life insurance for many years.
An insurance worker @opinionatedtanya told her followers on TikTok about this unfortunate tale.
It turns out the elderly woman had been paying all those years, but she had not increased her payments at any point to keep up with the cost of her insurance. Seriously? Who even knew this was a thing!
The TikToker said: “I pretty much explained to (the elderly woman) that your policy is running out of cash value.” She said: ‘Well, I’ve had this policy since 1987.’”
The insurance worker explained: “The policy is running out of cash value because you’ve been paying the same premium every year since 1987. You haven’t increased it, you haven’t put any more money into your cash value. Therefore, there’s not enough money to offset the cost of insurance.’”
The TikToker told the woman she could get a new life insurance policy, go without insurance, or cash out. However, there was another problem with the last option.
The elderly woman decided she wanted to cash out but it turned out she only had $70 left in something called a “cash surrender”.
The woman hung up on the insurance worker. I don’t think many people would blame her! Wow. To get to that age to hear this.
The TikToker said: “This type of policy is a universal life policy, and this is very common. We get calls like this all the time, where a 72-year-old person, 80-year-old person, even a 60-year-old person who’s had their policy for more than 15 years thinks that just paying the premiums on time every month is going to keep the policy, and it does not.”
Seriously, we get life insurance for security, not for panic in old age!
The video has since been taken down, but here’s another video from the same creator about how “cash value” really works.
@tanya_01_87 #howlifeinsuranceworks #whathappenstomycashvalueonmylifeinsurance #lifeinsurance
Understandably, folks on TikTok were upset and confused.
There’s no reality where it should be this confusing!
This!
Everyone feels for the elderly lady.
I’m sorry, but this is indefensible. These companies know exactly what they’re doing and it’s sickening.
Now that you’ve read that story, check out this one about a delivery driver who took a $400 grocery order back because she wasn’t given a tip.
