This is actually an issue with my personal policy. I was sold a MOO IUL with disability rider. The agent told my wife and I that we'd be fully covered if I got sick. Well, I did get sick, and unfortunately the rider was misrepresented to him - and then he told us bad info. I'm still on the hook for the majority of the payment, just not the life insurance portion. What recourse do I have? The agent fully admits to this mistake.
MOO Disability Rider on IUL was misrepresented - now what?
- Thread starter ManyLeads
- Start date
Tough spot. Sorry to hear about your sickness.
Omaha has 2 disability riders. One with waiver of charges (which I'm guessing you have) and then one for a specified amount of funding.
The good news is that if you're already overfunding (which you should be doing on most IULs), the cash value should support the policy for a while with no insurance charges (as long as you didn't just buy it).
Have your agent order an in force illustration as currently funded (no premiums/no charges) and see what it looks like.
You could also order one with minimum funding to keep in force for an arbitrary time period (like 5 years) if that first option doesn't look good. Then when you recover you can resume your previous funding.
You can play out a lot of scenarios with in forces. Use them to determine your next steps.
That should give you an idea of where you stand.
- 26,926
What @Tahoe Ray said. It was solid advice.
Trying to read between the lines in your post. Sounds like it may be waiver of cost. That inforce showing no more premiums will give you a good starting point.
As you are trying to bracket in on a strategy know that you may be able to lower face amount also to lower cost. / load. Also if your prognosis is terminal, your policy may have an accelerated benefit rider.
Sounds like you made a wise move getting the insurance before you became ill.
Trying to read between the lines in your post. Sounds like it may be waiver of cost. That inforce showing no more premiums will give you a good starting point.
As you are trying to bracket in on a strategy know that you may be able to lower face amount also to lower cost. / load. Also if your prognosis is terminal, your policy may have an accelerated benefit rider.
Sounds like you made a wise move getting the insurance before you became ill.
Last edited:
- Thread starter
- #4
- 26,926
Post a copy of the illustration you signed.
- Thread starter
- #6
- 5,372
It should be in the back of your policy. Applications & sometimes signed illustrations are part of your delivery policy packet
If your agent is admitting he sold you thr better rider but he filled out the Application wrong, he should file an E&O claim on his malpractice insurance. You cannot file a claim on his policy as you are not the E&O policy owner, you can merely sue him. However, the minute he became aware of this mistake & he believes he was wrong, his E&O policy requires that he call them to let them know there is a potential lawsuit/claim. Not sure if they will pay or agree to settle or if it woukd have to go to court. Do you have any thing in writing of him saying it was his mistake? Without it in writing & if you signed the application & the illustration, the E&O carrier may not agree to settle out of court, etc
- Thread starter
- #8
Attached is my redacted IUL illustration. Please excuse some of the errors because I had to convert it to a word doc, redact, then reconvert but you should be able to get the gist. Thank you so much for your feedback on this.
And yes, the life agent who sold us the policy admitted in an email and even drafted a complaint letter to send to MOO, we just never followed through because at the time I was dealing with so many health challenges (leukemia and a BMT).
And yes, the life agent who sold us the policy admitted in an email and even drafted a complaint letter to send to MOO, we just never followed through because at the time I was dealing with so many health challenges (leukemia and a BMT).
- 5,372
I am not familiar with This carriers product, but based on the illustration you attached it looks like you were sold the more basic rider that waives the costs. Not the planned premium. Also concerning is it looks like the premium was designed to only guarantee the coverage until age 75 & it is basically a term to 75 at those planned premium levels
On the positive side the policy has the chronic illness rider should your current health battle require care, etc.
I wish you well on beating leukemia
TexasLifeAgent
New Member
- 15
Hi @ManyLeads ,
I looked at Page 9 of the Illustration you attached:
"Riders provide extra benefits not included in the basic policy. Riders may affect your policy's accumulation values."
"Disability Waiver of Policy Charges Rider"
"If the insured becomes disabled before the policy anniversary following the insured's 60th birthday and the disability continues for at least six months and the insured is unable to perform for pay or profit any activity for which they are qualified by training, education, or experience, United of Omaha Life Insurance Company will waive the payment of the monthly deduction amount (cost of insurance charges and expense charges) during the continuance of the disability while the policy is in force or until the Rider terminates, whichever occurs first. (The cost of this Rider is $174.15 in policy year 1 and increases thereafter. This cost is deducted from the accumulation value when due.)"
,
I also looked at MOO's Producer only "IUL Portfolio Overview" flyer, which states:
"Early Access to the Death Benefit for Long-Term Care, Terminal and Chronic Illness"
"Terminal and Chronic Illness Riders are issued with the policy at no additional cost and with no additional underwriting. Clients also have the option to purchase a Long-Term Care (LTC) rider.3"
"3 Clients age 30-79 are eligible to apply. If the policy is issued with the LTC Rider, the Chronic Illness Rider will not be included."
I also looked at MOO's Consumer Brochure, which also states:
"Accelerated Death Benefit for Chronic Illness Rider"
This feature allows you to access a portion of your death benefit early if you are chronically ill, as defined in the rider. This money can be used to help cover the costs of long-term care, although there is no nursing home confinement required.
This rider is automatically issued with all policies that do not include the LTC Rider. There is no cost to have this rider included with your policy. Charges will only be assessed if you choose to use the rider benefits.
"Accelerated Death Benefit for Terminal Illness Rider"
If you're diagnosed with a terminal illness and have a life expectancy of 12 months or less, this feature allows you early access to a portion of your death benefit. This money can help provide a little more comfort during a difficult time.
This rider is automatically included with all policies at no additional cost."
The above are also on Page 10 and 11 of your Illustration.
1) If you look at your IUL Insurance Policy Application (that is included in your Insurance Policy Contract), you can check if the "Disability Waiver of Policy Charges Rider" option is selected (that would be on Page 1 of your Application Form) and check if the "additional cost of $174.15 in policy year 1" is included (or not) with your monthly premium of $674.40.
If you have been paying the additional $174.15 for the "Disability Waiver of Policy Charges Rider" (with the other conditions specified and highlighted in bold above), then that should be in effect. If not, then you still have the two other riders below that are in effect and should be able to help you.
2) For your monthly premium of $674.40, it includes, at no extra cost, the "Accelerated Death Benefit for Chronic Illness Rider" and the "Accelerated Death Benefit for Terminal Illness Rider", which you can apply for if you want or need to.
3) You can also take out loans from the Accumulated Value of your IUL. (Don't withdraw, just take loans). On Page 18 of your attached Illustration, Year 5 row, it shows a Cash Accumulation Value of $21,744 (Guaranteed Values), $30,604 (Alternate Scale Values, page 22) or $32.698 (Non Guaranteed Values, page 22) . You can also view the exact Cash Value of your IUL when you login to your Customer Portal at MOO, they also post it there, so you can know how much you can borrow.
Sorry you are going through some challenges right now. It's wise that you have put this policy in place for yourself to protect your family. IULs have living benefits like the ones I outlined above. There is hope :-)
MOO is a solid company and their Customer Service line always tries to help. (I also have an IUL with them).
Praying for your healing. :-)
Cris
"The Lord bless you and keep you; the Lord make His Face shine upon you and be gracious to you; The Lord lift up His countenance upon you, and give you Peace." - Numbers 6:24-26.
Similar threads
