Insurance Complaints

I purchased life insurance policies for myself and my husband in 2001. I am a federal employee and the premiums have been deducted from my paycheck bi-weekly for the past ten years.

In June, I got a letter stating that I had to send $157.41 immediately or lose my coverage.   I called to talk to a rep who would not listen to me. She insisted I had “not made a payment since April”.   I then called the agent listed (not the one I originally bought the policies from).   It took awhile before I was able to make him understand that I have never “made” a payment to Midland, but that it was done by payroll deduction.   He said he would take care of it and get back to me.  I finally heard from him this week – early August – and he tells me the problem is the deduction was $1.69 short each payday for the last ten years.  This was not my fault – this arrangement was made between Midland and the former agent.  He suggested I call the company and speak to Becky.  Again, I went through the “you have not made a payment since April” routine.  I asked why this was not brought to my attention ten years ago.  She had some foolish answer about how a lot of policies were this way and only in the last year the company had started reviewing them!  Somehow, THIS WAS MY FAULT!?!?

Her remedy was to immediately pay almost $700!  I told her that was impossible.  It was also not right.  I do not owe them $700.  The most I would owe them is $440, and again, if they had advised me YEARS ago, the $1.69 shortage per paycheck would have been corrected!  Now, they want to give me a few days to pay this when it has been short for ten years.  Not only that, she also told me during the conversation, that since the payment was not enough to cover the premium that they “hold the payment until the next one is made and there is enough to make the first one. These policies have never been paid up to date.   This means that at anytime, from day one, if either one of us had died, they could have denied paying the claim because the policy was in arrears.

They KNEW that the automatic payment would not cover the premiums and the policies would always be in arrears, yet, for ten years did nothing about it.  Now today, I receive a letter from them advising me that the policies were canceled in APRIL – four months ago.  Yet, they continue to take the allotment from my paycheck.

I notice on their website that they are “employee owned” so it is in the interest of these employees to rip off everyone possible. They have collected premiums from me (and continue to do so) but will never have to pay a red cent on them.

Can you spell F R A U D????????

Submitted By: DJW

Location: Tampa