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Old 06-15-2014, 07:48 AM
2,431 posts, read 3,514,873 times
Reputation: 1848


My mom has been paying into this service for many many years. She is now 78 years old and she figured she's already paid about 23,000 for the plan.

Bankers Life has a lot of turnover of employees and every year or two someone new is coming over to introduce themselves to my mom and talk about her policy.

She just had another NEW person come this past week. Unbeknownst to her, she was informed that her policy had lapsed. She still had the additional 50.00 per day policy though. She was about in tears and so worried and concerned wondering what the heck happened. Why in the world would they cancel her policy after she has been paying in to it for so long.

The person she had prior to the guy that visited last week, was fired from Bankers Life for negligence. My mom did take out an additional 50.00 per day insurance on her policy. The guy led her to believe it was the same policy with just the additional coverage. She got a bill in March and she paid it thinking she was paying for the old policy plus the new additional 50 coverage.

Come to find out the additional 50.00 was a separate policy so she had 2 policies....the old policy that she paid 23,000 into already and this new policy. She was never told this by the negligent rep. that she later learned got fired.

She was horrified to find out the old policy had lapsed. She would have never let it lapse. She called me to come over to her house and listen to what this rep was telling her.

I asked the rep why in the heck would mom let it lapse after she paid so much into it. I asked mom if she received any notifications from Bankers Life that this policy was about to lapse and she said no. She thought there was just the one policy and not 2 so she paid the one bill.

My mom keeps everything...i.e. any mail that comes into her home and staples it together or keeps it in a binder. She had no mail from BL about the old policy lapsing. She even shared the folder and let the new rep look thru it.

She keeps all her bank statements and everything and had everything organized. Everything was spread out on the table so the new rep could see mom kept EVERYTHING.

I told the rep that it was not fair to my mom to cancel her policy when she was not warned....no mail or phone call from anyone at Bankers Life. She was under the understanding that she had only one policy and not 2.

Mom is beside herself. The rep then (he is actually a manager at Bankers Life) called into the office and talked to one of the higher ups there. He is going to look into her paperwork at office and see if any correspondence was mailed to her about policy lapse. I doubt he'll find anything because if it were sent, she'd have the paperwork in her folder. Why in the heck would the agent/rep let her policy lapse after she had paid into it for so long. The agent said some just send correspondence and don't call. Well the guy at the time was negligent and now fired so it's evident he was not good at performing his job and now my mom has to pay the price for his negligence?

Now my mom lost her policy through no fault of her own. I think Bankers Life is just going to say Sorry, nothing we can do. I don't think it fair at all. My mom even worked at a retirement home handling finances for the residents so this is why she knew how important having long term care was.

Do you think she should talk to a lawyer? I mean if it was never communicated to her about her policy lapsing and they let it lapse then I see that the company was negligent. They should have also told her it was 2 separate policies.

The higher ups at Bankers Life said to let him investigate it more and he'll get back with my mom but I'm thinking they will find a way to not make it right and just tell her it lapsed and nothing more they can do. They told my mom to not expect quick results and this may take a long time to look into. I'm not happy with that answer because in the mean time this is a big worry for my mom. How much time should she allow them to look into it?

Any advice? Thanks.

Last edited by diddlydudette; 06-15-2014 at 07:57 AM..
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Old 06-15-2014, 08:11 AM
7,979 posts, read 11,655,757 times
Reputation: 10473
I would get this all written down as you have here including the negligent guy's name, times and dates of visits as best as she can remember, see if you can get some clerk who doesn't know what's going on yet to confirm that guy got fired and basically get your data together in case they just shrug, take her money and run.
If that happens yes I'd get a lawyer and I'd write your congressman, senator, BBB and anyone you can think of and cc the insurance company on every letter. Flood them with letters. Not that they will necessarily do anything but it will let the insurance company know that you mean business and show them that their brand name is getting bad press. At which point they might realize that its not worth it to them to no reinstate her policy. You can only hope.

Frankly I'm sort of shocked that people actually came to visit her regularly and it wasn't all done by a call center in India. Is that normal?
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Old 06-15-2014, 08:26 AM
741 posts, read 641,304 times
Reputation: 576
My advice? Speak with the family attorney.
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Old 06-15-2014, 08:59 AM
4,649 posts, read 6,479,224 times
Reputation: 5394
Contact your state department of insurance. If your in California they don't play when it comes to messing with the elderly. Maybe also contact your local TV consumer advocate. At the very least contact the insurance department Monday morning.

When replacing a current policy there are rules that have to be followed. There's a good chance that former agent was doing more than they let on. If you still have his business card you can ask the insurance department if they have any complaints on him.

Good luck.
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Old 06-15-2014, 09:06 AM
2,431 posts, read 3,514,873 times
Reputation: 1848
Thanks everyone for the responses.

We're in SC. Is there someone we should contact in SC? Mom has an old business card of the negligent guy.

I asked the new rep why the guy was fired and he just said he was negligent and that they are still finding things he did wrong. That's about all he said about it. I'm just glad mom called me over so I too am a witness to the conversations between my mom and this guy.

The new rep also told her that if thru no fault of her own, this policy was cancelled then they would allow her to pay what is owed up to this point to reinstate the policy. She would owe over $4,000 to reinstate it. Somehow I'm thinking they will find something somewhere to disallow this though. I'm skeptical and mom is upset that she would then have to come up with the 4,000 when she thought all along to this point she was paid in full.

How much time should she allow Bankers Life to investigate this?

ETA: Found this site. http://www.doi.sc.gov/8/Consumers It does have a complaint form to fill out. I'm thinking she should wait first and see what Banker's Life finds in their investigation before complaining that they are doing nothing? At this point I hate for her to have to hire an attorney as that would cost her even more money. I know many give free consults just to talk to them and see if she'd even have a case so perhaps she could do that.

Last edited by diddlydudette; 06-15-2014 at 09:15 AM..
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Old 06-15-2014, 09:19 AM
Location: MMU->ABE->ATL->ASH
9,126 posts, read 17,129,667 times
Reputation: 9980
I would engage a lawyer, Some one who specializes in elder care issues.
Start saving up the $4K.
This needs to move past the new agent.

It need to move to the Bankers Life Compliance office, There are rules and procedure the agents need to follow to change/replace LTC polices.
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Old 06-15-2014, 09:31 AM
Location: MMU->ABE->ATL->ASH
9,126 posts, read 17,129,667 times
Reputation: 9980
Seeing that your mom is still in good health, and had been paying for years and years. Odds are Bankers will just let her make up the missed payments.

Many Insurance company allow for 3rd party notification on Policies so if there is a change, or non/payment the 3rd party (you) get notified also, so you can follow up on why it was not paid, or what change was made.
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Old 06-15-2014, 08:02 PM
Location: NYC
2,905 posts, read 1,583,756 times
Reputation: 7921
Definitely get the lawyer, the insurance company will talk nice but not do anything. If they push back consider contacting a state advocate for the elderly type office or finally the tactic of bad publicity by calling the local TV consumer reporter at the biggest station, they would love this since it's so clearly "good guy/bad guy" & nobody wants to be seen publically as conning an old lady and they will make calls to try to get the happy ending.
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Old 06-15-2014, 09:06 PM
Location: somewhere in the woods
16,884 posts, read 13,030,934 times
Reputation: 5211
Originally Posted by Longford View Post
My advice? Speak with the family attorney.

I agree, talk to an attorney and try to sue the bank and the former employee.
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Old 08-26-2014, 12:34 AM
Location: LA, California
15 posts, read 15,132 times
Reputation: 28
This just broke me. Shocked even that they did not bother to send your mother a damn letter just to make sure she's updated. I'm currently 27 and if this is the future long-term care insurance service that I'll experience when I'm 70, I'll be damned.

However, I think you can do any of these things (info courtesy of www.acsia.com);

*get a new long-term care insurance and have the old one reinstated. I don't know how the insurance company will argue/negotiate with this but I strongly advice you stand firm on the fact that your mother is almost fully paid

*double check everything. The old letters. The information they are feeding you. The names and position of the person you are talking to. Even the terms and condition, for all its worth, read it.

*make a note of everything. If possible, before you and agent separates, have him/her signed on your transcript to make it "valid" and give the impression that you are listening.
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