Can life ins be cancelled with no notice?

[pbates]

Hello! I am not an agent...I found this forum while searching for an answer. Perhaps some of you have heard of our problem, and can offer advice. It will be much appreciated.

A few months ago, my husband & I decided to look for a life ins. policy to supplement what we already have (250K on me & 50K on him).

I found a company called Matrix Direct, and through them, we got a 30K policy on my husband from Globe Life Ins., bringing my husband's total amount of life ins. to 80K.

This was fine, and plenty of ins. since everything (all the bills) are in my name. I just wanted enough on him if anything happened to pay off the few bills he does have, and give something to his son and our daughter.

The new policy for 30K was issued on 5/1/08. I immediately set up automatic bank draft for the premium. Everything was fine and they were taking the premiums each month.

Last weekend while reconciling my bank stmt, I noticed there was no draft for 9/1. In checking back, they actually didn't take it on 8/1 either; at that time I just figured the timing was too close or they had a glitch and I didn't worry about it. But when I saw the Sept. payment not taken either, I knew something was wrong.

Monday a.m., I called Globe to find out. The CSR would not tell me, saying a "supervisor" would have to call me. Later Monday I called again and got the same answer.

Tuesday I called the Matrix Direct guy and he has called them twice also. They won't tell him anything either.

In checking their online account services, it simply says the policy is "inactive". Well yeah, since THEY are not taking the premiums!

Nothing has changed in our lives; the bank account is the same; the balance averages far more than the $98 premium so it is definitely NOT an issue with getting it.

I also e-mailed Globe yesterday and absolutely begged for an answer. Nothing. No answer. No call. Zilch.

Can they do this? What on earth could be the reason? We, and the Matrix guy are just totally stumped here. Not a clue what the heck is going on.

It's a darn good thing I didn't kill my husband during the 16 days we went without power due to Hurricane Ike! (Just kidding!)

Any ideas at all are welcome!

 

[moonlightandmargaritas]

"Any ideas at all are welcome!"

This is what happens when you buy insurance through a website, with a call center with $7.00 an hour "CSRs" manning it.

Next time, use an experienced agent. When these inevitable problems come up, there's someone to help you.

Doesn't cost any more either.

 

[somarco]

Glitches can and do happen. Usually this occurs when the carrier tries to draft and there isn't enough money in the account.

The draft bounces and the policy goes into grace period status. Some carriers will try to draft again in 10 days or so, some don't.

Most will send you a late notice but it usually doesn't go out until near the end of the grace period.

As to why Globe isn't talking, that is anyone's guess.

They are a fringe carrier offering mass marketed plans to folks who are shopping for low face amounts.

For the $98 per month you could probably get double or triple the coverage on a similar plan with another carrier as long as hubby is healthy.

Before going back to Globe, or Matrix, you might want to check around and talk to a real agent.

 

[pbates]

"Any ideas at all are welcome!"

This is what happens when you buy insurance through a website, with a call center with $7.00 an hour "CSRs" manning it.

Next time, use an experienced agent. When these inevitable problems come up, there's someone to help you.

Doesn't cost any more either.

It doesn't? I always thought it did cost more...just a misconception on my part. At the time, I spoke with the Matrix guy at length. He seemed to be experienced and knowledgable, but I'm starting to see what you mean.

When he suggested Globe, I was not all that impressed, due to all the mailings I have gotten from them through the years. But I checked on their ratings, etc., and figured they must be ok. Should have listened to my gut feeling I guess.

 

[pbates]

Glitches can and do happen. Usually this occurs when the carrier tries to draft and there isn't enough money in the account.

The draft bounces and the policy goes into grace period status. Some carriers will try to draft again in 10 days or so, some don't.

Most will send you a late notice but it usually doesn't go out until near the end of the grace period.

As to why Globe isn't talking, that is anyone's guess.

They are a fringe carrier offering mass marketed plans to folks who are shopping for low face amounts.

For the $98 per month you could probably get double or triple the coverage on a similar plan with another carrier as long as hubby is healthy.

Before going back to Globe, or Matrix, you might want to check around and talk to a real agent.

Yeah, I'm sure they do. But I always keep close to $4,000 in the bank account, and I get a daily e-mail showing transactions and balance. It isn't a money issue.

The Matrix guy says they "can't" do this. He said once the policy was issued, they simply can't decide to cancel it, especially without cause, notice, etc.

He said he's never even heard of this happening. Have you, or anyone else?

Edit: My answer to moonlight isn't showing for some reason.

 

[somarco]

Life insurance policies can only be canceled by the carrier for fraud, misrepresentation or non-payment of premium.

In any event a notice goes to the insured or the policy owner.

 

[moonlightandmargaritas]

The Matrix guy says they "can't" do this. He said once the policy was issued, they simply can't decide to cancel it, especially without cause, notice, etc.

Forget the Matrix person. You're wasting your time.

Go directly to Globe.

 

[JMO Fan]

If calls to Matrix and Globe aren't productive, call consumer services at your state insurance dept.

If you don't know how to contact the state, link here: Link to Your State Insurance Department Site

 

[pbates]

Thank you all for your replies. Globe FINALLY called me, just a minute ago.

They said there was some sort of "glitch" in their system; THEY didn't know why the automatic drafting of the premium wasn't going through either, but that it wasn't anything to do with us or our bank.

Supposedly it is fixed now, and they are reinstating the policy, etc. I will be looking around for something better, as ya'll mentioned, and just get away from them.

Their "customer service" definitely bites.

Again, thank you!!!

 

[Mr. Bill]

Thank you all for your replies. Globe FINALLY called me, just a minute ago.

They said there was some sort of "glitch" in their system; THEY didn't know why the automatic drafting of the premium wasn't going through either, but that it wasn't anything to do with us or our bank.

Supposedly it is fixed now, and they are reinstating the policy, etc. I will be looking around for something better, as ya'll mentioned, and just get away from them.

Their "customer service" definitely bites.

Again, thank you!!!

Seriously, though, don't you think it's time you actually spoke with an agent? You don't even know if you're paying too much!