Whistleblower: 92-year-old’s insurance policy yanked after 40 years of savings

  • Article by: Alejandra Matos , Star Tribune
  • Updated: October 14, 2013 - 10:34 AM

CUNA Mutual Group has canceled thousands of “life savings insurance” policies at credit unions nationwide.

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gofurnuttOct. 7, 13 7:58 PM

'Ya Gotta Love These Insurance Companies and Their Huxter Moxie.....Just When One Thinks That They've Seen It all, They Come Up with A New Scam......

bogie246Oct. 7, 13 8:22 PM

Life insurance policies often contain verbiage that permit changes in coverage even after many years of premium payments. There is a reason life insurance agents are viewed like used car salesmen or attorneys or even worse. Life companies pay big commissions so slick agents can trick buyers. Be cautious of life policies, annuities, longterm care and other insurance products. They are likely to be high priced bad products.

jbhall56Oct. 7, 13 8:22 PM

Sorry but this article doesn't make any sense. For a $2,000 payout with a premium of $550 per year, you would have paid for the policy, in full, in four years. That said, if the couple put in $2,000 originally, then it could be converted to another type of policy for $2,000. But that begs the question, what was the credit union paying on? There has to be more than $2,000 worth of value in this policy. Then there is the issue of being offered other policy options which could be a fully paid policy based on whatever the current policy is worth. I don't think this article was written to reflect the facts properly because it makes no financial sense. And if the facts are accurate, CUNA totally ripped these people off.

Geezer1976Oct. 7, 13 8:25 PM

Ah yes...a Ponzi scheme. you would think that the insurance company and especially the credit union would be more honorable than this.

SigfriedOct. 7, 13 8:44 PM

It was a business decision. It will also be a business decision when every Senior or anyone how hopes to be a Senior someday stops doing business with any Credit Union doing business with this insurance company.

HankKOct. 7, 13 8:46 PM

I think I'm going to be sick.

kenw1952wOct. 7, 13 8:48 PM

Another example of why there is absolutely no pension, insurance policy, warranty, guarantee, interest rate, etc that is 100% believable. Corporations, banks, insurance companies should not be allowed to use these terms when selling their huxter programs. Remember, if it sounds too good to be true...it usually is. If a company can't or won't live up to it's promises and you take them to court, they can still just file bankruptcy and remain in business.

janderson2Oct. 7, 13 8:50 PM

Leaving $2,000.00 in for 40 years just to double it? That's not even 1/8 of 1 % a year compounded. Wise decision. Time for all of us to take personal responsibility. She knew the terms could change at any time. Just because they haven't for 40 years doesn't somehow "obligate" CUNA to anything. Common sense by all investors would go a long way including this case.

DufferHOct. 7, 13 8:59 PM

This family is in for a surprise. The $2,000 would only be a dent in normal funeral expenses. Of course, since her husband was a veteran, she can get her plot, stone and urn paid for at a natl cemetary.

gophercrazyOct. 7, 13 9:06 PM

Credit Unions "dangle the carrot' for Years to keep your business. And then they pull this??? This is a small policy, but very BIG to those who need it! Remember, the Credit Unions are the policyholder, and have agreed to this!! CUNA is the Major provider for credit unions, They are one in the same! And ... they exist under the guise that they are "non-profit", so they do NOT pay taxes like you and me ... and other community banks! Yet their deposit rates are no higher, and their loan rates no lower than other community banks! Where does all that "profit" go??? TO their upper management, and capital expansion. It certainly doesn't go to their "members", as they would like you to believe!! And then they pull this crap?? Incredible!!!


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