No Life Insurance Late Payment Notice? What Is Protective Thinking?

We get customer service. It’s a good thing where you go out of your way to make sure things work out satisfactorily for a client. That’s why life insurance companies send out late payment notices during the grace period to make sure that a customer didn’t miss their statement which could lead to an unplanned lapsed policy. I was talking to a Protective Life insurance client, retired CEO of a large company today. Well, technically I can’t call them a Protective Life client because Protective no longer acknowledges my existence, but I still service them and answer their questions, provide them forms and the like. Anyway, this client of mine has a trust held life insurance policy, a $5,000,000 life time guarantee UL with a premium of just over $32,000 a year. He didn’t get a bill from Protective this year. Probably lost in the mail. Maybe Protective forgot to send it??
But by the time the trustee realized he hadn’t received a bill he called Protective. He remembered my conversation with him 9 years ago telling him never to skip a payment because it would jeopardize, no, completely ruin the lifetime guarantee. He told customer service that he hadn’t received a bill and was told that it wasn’t a problem because there was plenty of cash value to carry the policy without a payment. He asked why he hadn’t received a late payment notice and they told him, “if there is sufficient cash value to make the payment we don’t send late payment notices!!!” Are you kidding us? He didn’t get a bill that he knows he should have and wants to pay the premium because he knows not doing that could jeopardize the guarantee, and they don’t send a late payment notice, or at least a notice saying the payment is late, do you want to pay it or have us take it out of cash value? The client sent us the annual statement provided by Protective showing the missed premium and the guarantee on the policy without that one payment went from age 121 to age 99. And this “customer service” person had the audacity to tell the trustee that there was plenty of cash value left that he could just quit paying the premium.
I’m no math whiz, but run this by your gray matter and see if it seems like a good idea not to make the current payment or future payments. The policy last year had cash value of $790,000. If the $32,000 payment was made the lifetime guarantee stays in place and the cash value, well, Protective didn’t show what would happen to the cash value if the payment was made. If the payment isn’t made it drops to $700,000 and the lifetime guarantee disappears. Cash value is dropping rapidly even with a payment, without a payment it is plummeting. Why would a company advise a client to take a path with their estate protection policy that will make it lapse prematurely? What is Protective’s goal? The answer is really simple and horribly immoral, but Protective Life Insurance is doing all it can to get policies to lapse before they have to pay a death benefit. But this is just an isolated thing right? Wrong!!
Protective Life has changed their term life insurance conversion option to make it both unaffordable and stupid to actually exercise the option. And as they buy up other life insurance companies they change the conversion options on all of the policies they take over and Protective Life Insurance doesn’t tell clients that they have just been screwed, that the client’s best conversion option with them is now to make sure you die prior to the end of your term life insurance. Think you’re only impacted if you bought a Protective policy? I saw a notice on Protective’s most recent acquisition of MONY Life and the only conversion option is now to the two horribly overpriced, under guaranteed insurance options with Protective. The same is true with their portfolio of acquisitions, West Coast Life, Empire General, Chase, Zurich Life, Federal Kemper, Zurich Kemper and on and on. Protective Life insurance has it figured out. Buy up everything they can afford and restructure the policies to ensure the smallest chance of paying out death benefits. Dishonest, corrupt, deceitful and immoral come to mind when looking at what Protective Life Insurance is doing. Want to know how bad the Protective Life conversions are? Life settlement companies won’t buy your Protective policy unless you are literally dying.
If you have questions or have an affected policy and want to see how to get out from under it, call or email us directly. We will do our best to help.

About the Author

Every year millions are needlessly declined for life insurance or approved and paying far more than they need to. For 14 years, I have specialized in turning those situations around and finding the right life insurance solution at affordable rates. I give every client the personal attention they deserve.

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