An insurance policy be bought. Problem be, on the 2nd year a loan be made on this policy NOT by policyhold
er(PH). No complaint was made by PH. Instead just continued paying premiums for 10 years next stopped at/from the 11th year and so on. What happens now? What endeavour should PH have done? Please advice. Thanks!
Answers:
Something is awfully wrong here. How could a loan be made without the consent of the policy holder? This doesn't add up. If you own the facts correct, then see an attorney - the insurance co. made a big mistake.
I would recommend calling the customer service number and ask to speak to someone contained by the remittance dept. Depending upon the size of the policy, accumulation fund, and/or surrender value some money could hold been available. Most likely what happen is that an APL, automatic premium loan, was made from either the dosh value or accumulation fund to reimburse for some missed premium payments. Call ASAP, the loan will continue to grow (% will compound) and begin to drink the policy in later years except taken care of now. Source(s): I am a rep.
Policyholder - does that show policy OWNER? The OWNER is the only person who can fashion a loan against the cash value. The strange part is, by the 2nd year, there isn't usually plenty cash value within the policy to HAVE a loan.
So. The owner needs to find out who was impersonate them, and press charges against them. If there are no charges filed (like it be a spouse?) then they are presumed to have acted next to the permission of the owner. After ten years, I think it's too belated!
Please don't confuse the policy owner with the insured. They are sometimes, but not other, the same person. Policyholder is a property/casualty possession, NOT a life insurance term.
At this time, there is insufficient background to correctly answer this question. Who took out the loan? Is the policy still in force at this time.
What be the loan used for i.e. paid up insurance, policy riders?
The PH should have contacted the insurance company at the time to inquire roughly the loan, who made it, what for, etc., as this loan if not paid pay for would decrease the death benefit available to the beneficiary.
An inquiry should still be made.
Related Questions:
Answers:
Something is awfully wrong here. How could a loan be made without the consent of the policy holder? This doesn't add up. If you own the facts correct, then see an attorney - the insurance co. made a big mistake.
I would recommend calling the customer service number and ask to speak to someone contained by the remittance dept. Depending upon the size of the policy, accumulation fund, and/or surrender value some money could hold been available. Most likely what happen is that an APL, automatic premium loan, was made from either the dosh value or accumulation fund to reimburse for some missed premium payments. Call ASAP, the loan will continue to grow (% will compound) and begin to drink the policy in later years except taken care of now. Source(s): I am a rep.
Policyholder - does that show policy OWNER? The OWNER is the only person who can fashion a loan against the cash value. The strange part is, by the 2nd year, there isn't usually plenty cash value within the policy to HAVE a loan.
So. The owner needs to find out who was impersonate them, and press charges against them. If there are no charges filed (like it be a spouse?) then they are presumed to have acted next to the permission of the owner. After ten years, I think it's too belated!
Please don't confuse the policy owner with the insured. They are sometimes, but not other, the same person. Policyholder is a property/casualty possession, NOT a life insurance term.
At this time, there is insufficient background to correctly answer this question. Who took out the loan? Is the policy still in force at this time.
What be the loan used for i.e. paid up insurance, policy riders?
The PH should have contacted the insurance company at the time to inquire roughly the loan, who made it, what for, etc., as this loan if not paid pay for would decrease the death benefit available to the beneficiary.
An inquiry should still be made.
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