So my parents received in the mail a charge for getting a loan in their life insurance policy but they never took one out? What does it even mean anyways? Can anyone explain it to me? They received one before and it was paid a year ago and now there’s another one in the mail.
2 Likes
Are they still paying premiums?
Because if they stopped, a nonforfeiture option (so your policy doesn’t lapse) is an automatic premium loan.
Maybe that’s it?
2 Likes
I’m not completely sure since I took over the policy as the owner when my sister passed away. It was a whole mess, but I finally got it sorted out. Now, I’m getting loan payments in the mail. The loan interest is about $7, and the principal is $90. I can afford to pay it, but I wanted to ask around before spending hours on the phone with an agent.
2 Likes
You probably missed a payment(s) and the policy loan itself the money so it didn’t lapse. You’ve got to pay back that loan.
2 Likes
That’s probably what it is.
Just set the account up online and see when the last premiums were paid. You may need to update your payment options.
1 Like
After reviewing the policies, I found out one of them is closed because I haven’t made any payments for over a year, maybe even longer. It should have been pulling from my bank account the whole time. This isn’t related to the title, but would this be my fault? I know I signed both accounts up for e-banking, so I don’t understand how this could happen.
Thought so. This sucks. Will be making a call first thing in the morning to sort this out. Thanks for the responses.