Get Gephardt
KUTV.com | Stories - Life Insurance Policy Suddenly Becomes Worthless
Wednesday, April 23 2014, 09:23 AM MDT
Life Insurance Policy Suddenly Becomes Worthless
Reported by Matt Gephardt
Produced by Cindy St Clair
(KUTV) Life insurance policies offer piece of mind that loved ones won't be left with a financial burden when you die. But when an Ogden woman says her life insurance policy suddenly vanished, she decided to Get Gephardt.

Pauline Thompsen has planned for her death. To make sure her family is not hit with sudden burial costs, she has been paying on a life insurance policy.

"$240 a year to keep it in service," she says she has been paying.

But after 25 years of paying $240, Pauline says she was surprised to get a letter from the insurance company saying, “Your premium now needs to be increased to $1,680,00."

Pauline says she called to ask why.

"She said, you haven't made any payments in years and years” Pauline says an insurance company employee told her.

On the contrary, Pauline has the checks to prove she has made the annual payments. But worse, Pauline says she was told that her policy is now worthless, which she says is not fair.

"I don't care if it's a bag of peanuts. If I've paid on them for 20 years it ought to be my peanuts," Pauline says.

Pauline's insurance company is the Midland National Life Insurance company. Get Gephardt called but they refused to comment. In a statement, their lawyer Victoria Fimea wrote, "Midland is unable to provide to KUTV information concerning any of our policyholders."

Get Gephardt took Pauline's case to the Utah Department of Insurance and life insurance specialist, Betsy Jerome. But bad news for Pauline says what is happening in Pauline’s case is actually quite common.

"What happens is you pay money in, and it goes into a fund, and that fund earns interest, and out of that fund the cost of insurance, the mortality charges, and expense charges are taken out. So as long as there is money in that fund, the policy stays en force,” Jerome said.

So, what does this all mean for Pauline? Well, after Get Gephardt calls, Pauline got another letter from Midland National. It seems they have decided to make an exception and even though they are under no obligation to do so, they have reinstated Pauline's policy. Midland National has also gone above and beyond to make it right for Pauline who the call a “loyal customer.” They have placed her account in "paid up" status, meaning she doesn't even need to make the $240 annual payments anymore.   

(Copyright 2013 Sinclair Broadcast Group)Life Insurance Policy Suddenly Becomes Worthless

News Photos & Videos - Submit Your Photos Here


More Gephardt Stories

Good Question: 'What if doctors don't have your type of blood?'
Get Gephardt: Military discount tough to claim for Vet's wife
Concert refund disappears in dead account
Good question: What's with the disturbing face on the city and county building?
Headstones delayed by Ogden monument maker
Get Gephardt: Movers destroy table, refuse to cover damage
Hidden leak costs homeowner, Insurance company refuses to help
Wallet Watch: Workers taking advantage of health care plans
Lender refuses to drop PMI
Wallet Watch: Big ticket items sitting on store shelves, Twitter ads, Seaworld shares
Major retailer refuses to honor warranty claim
Wallet Watch: Treasury department takes fake bills off streets, gas prices
Good question: Has this been a smaller fire season in Utah?
Wallet Watch: e-Cigarettes
Comcast Scam Investigation
Insurance bills for out-of-network hospitals
Late mail delivery investigation
Good Question: How did running with bulls tradition begin?
FedEx fined for drug deliveries, back to school prices rise and Utah unemployment drops further
Yellow Page scammers targeted by FTC
Airline fees, Google looks at security flaws and Microsoft announces layoffs
Comcast in damage control, automaker recalls continue and Hersheys instates a price hike
Illegible finger prints stall adoption
Citigroup pays for mortgage crisis, president pushes infrastructure projects and a new Airbus
Good Question: Why does a soccer ball bend?
Disabled woman loses benefits because of prepaid funeral plans
FTC Complaint: Amazon got rich off unauthorized in-app purchases
Woman's vehicle seized by police after bogus police report
McNeil trial witness now allegedly a deceitful contractor
RSL fans towed despite paying to park
Costly colonoscopy following a man's belly ache
Good news for job hunters and celebration cost on the rise
Arizona baseball games blacked out in Utah
Gas prices hit six year high, no guns allowed in Target and Google buys Songza
FTC seeks hundreds of millions from T-Mobile for cramming
FTC: T-Mobile made millions with bogus charges
Women's football league leaves supporters hungry, for cookies
Good Question: "Can you be arrested for not paying a debt?"
Cable company stands up customer thrice
L'Oreal's deceptive advertising, GM recalls additional vehicles and new airline threats
Kleargear ordered to pay $300k to Utah couple
Supreme Court rules against internet television streaming company
What to do when winning doesn't pay
Isolation at work, home prices jump and AT&T/DirecTV merger
Bundling delay costs consumer
Airbag recalls, Americans struggle to save and pushing for paid maternity leave
Good Question: "Why do grads wear square-caps and gowns?"
Smartphone kill switch lowers theft, Google encourages girls to code and Harley Davidson goes electric
Auto-warranty company slow to give refunds in Utah, nationwide
GM recall lawsuit, fed talks interest rates and Amazon reveilles new phone
Luggage lost for more than a year
Home construction slows, Dr. Oz testifies and tech companies target home security
Good Question "What if you leave your mail in the box?"
More GM recalls, PF Chang credit issues and Priceline merges with OpenTable
Soccer hooliganing: Scams target fans
Possible gas price spike, beer makers slow the flow and Hobby Lobby's deceptive advertising practices
Glitch shows Medicaid recipient underpaid
Frequent flier changes, Amazon's aggressive negotiations and Subway strikes deal with Keurig
Lender error leaves man with huge student loans
Utah's small business grade, smart phone wallets and Microsoft boasts games at E3
Advertise with us!

 

Pay It Forward
Fresh Living
Family Matters
Road Trippin
Hooked On Utah

Advertise with us!