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Beware of replacing existing life insurance policies on advice of an agent
31 Dec 2019 (31 views)


Mr. X asked me for help. He had two policies which he kept for over 20 years.

A new insurance agent advised him to terminate these two policies as the cash value was higher than the sum assured, and to use the money to buy two new policies.

Mr. X took that advice and acted accordingly. When he received the cash values, he contacted the old agent who told him that his actual coverage is much higher than the sum assured, as the accumulated bonus is quite high.

Mr. X changed his mind and asked for the two policies to be reinstated, as he had been wrongly advised and misinformed by the new agent.

The insurance company wanted to check his health status. Mr. X is in his late 60s and has mild hypertension, which is not unusual for a man of his age. The insurance company wanted to check with his doctor on his medical condition. The matter dragged on for several months. He approached me for help.

I advised Mr. X to write a letter to the CEO to state the facts of the case, and to ask for immediate reinstatement of his two policies without delay. I consider it unreasonable for the insurance company to refuse this request.

The whole issue arose due to the bad advice of the new agent. The insurance company should take responsibility for that agent's conduct. The agent had since been terminated or has resigned.

Some idiots will ask me - which company is it? It does not matter. This could happen to any company. It is quite a common practice.
 


Beware of replacing existing life insurance policies on advice of an agent
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Mr. X asked me for help. He had two policies which he kept for over 20 years.

A new insurance agent advised him to terminate these two policies as the cash value was higher than the sum assured, and to use the money to buy two new policies.

Mr. X took that advice and acted accordingly. When he received the cash values, he contacted the old agent who told him that his actual coverage is much higher than the sum assured, as the accumulated bonus is quite high.

Mr. X changed his mind and asked for the two policies to be reinstated, as he had been wrongly advised and misinformed by the new agent.

The insurance company wanted to check his health status. Mr. X is in his late 60s and has mild hypertension, which is not unusual for a man of his age. The insurance company wanted to check with his doctor on his medical condition. The matter dragged on for several months. He approached me for help.

I advised Mr. X to write a letter to the CEO to state the facts of the case, and to ask for immediate reinstatement of his two policies without delay. I consider it unreasonable for the insurance company to refuse this request.

The whole issue arose due to the bad advice of the new agent. The insurance company should take responsibility for that agent's conduct. The agent had since been terminated or has resigned.

Some idiots will ask me - which company is it? It does not matter. This could happen to any company. It is quite a common practice.