The Unfortunate Outcome of Many Life Insurance Policies
With every policy, there’s the standard mountainous paperwork that needs to be filled out packed with fine print. In life insurance policies, the fine print is everywhere and if you haven’t thoroughly read through it, well, caveat emptor. For those who may not recognize this term, caveat emptor–“let the buyer beware”–describes when the buyer is solely responsible for examining the quality of the product (life insurance in this case) before any purchase is made. Basically, the buyer must always keep in mind, the chances of the product failing to meet expectations or even defect. Caveat emptor is a term that should not be associated with buying life insurance, right? Wrong.
Unfortunately, something like this happens more often than you think in the world of life insurance; especially in cases where the buyer dies and the policy isn’t entirely paid off yet. There have been circumstances where buyers invest in a life insurance policy, pay a portion of it off, and unexpectedly passes away before all the payments are made. Often times there is no record or knowledge of this policy to the policy owner’s family.
When this happens, the life insurance company will continue to withdraw the premiums from the buyer’s account through auto-draft, and since the family had no knowledge of the policy, they close out the bank account. Usually, policies will close in 60 days if no payments are made and the family will never collect; it’s a complete loss of assets.
Happens More Often Than You Think
The worst part is, that many companies are aware of situations like this and continue to make money in any way they can. In 2016, 60-Minutes ran an investigative report on life insurance policies. They found that 25 of the most prestigious and renowned life insurance companies were involved in multiple claims that amounted to a staggering $7.5 billion in back-death claims. That’s 7.5 billion dollars worth of policies that wasn’t paid out because family members never knew their loved one had an insurance policy and therefore never finished making the payments.
This astonishing fact leaves many thinking, “how can companies get away with something so duplicitous?” Well, it’s all in the fine print. The agreements that are signed by the buyer unclearly states the death benefit of the policy will only be paid if a death claim form is submitted. So, if the buyer passes away before finishing the necessary payments and informing their family of their policy, how is the family to ever know that a death claim form needs to be submitted in order to see the money from the life insurance?
Life Settlements Are A Great Solution
Selling your life insurance policy for a life settlement is one of the best solutions you can’t make when it comes to an unwanted or now unaffordable life insurance policy.
At Life Insurance Settlements Inc, we can buy your existing life insurance policy and provide you with cash that you can use now. Contact us at 1-766-326-5433 for a consultation today.