Homecomplaint › Charles - Forest Hill, MD - Transamerica Universal Life Insurance - Misrepresentation - Policy Implosion

Consumer Complaint

Charles - Forest Hill, MD - Transamerica Universal Life Insurance - Misrepresentation - Policy Implosion

Companies Involved: 
Transamerica Premier Life Insurance Company
Issue Area: 
Insurance

In 1983 at age 30 I purchased a $50,000 universal life insurance policy from Commonwealth Life Insurance Company (now Transamerica Premier Life Insurance Company) and have paid premiums monthly over the past 34 years. Until last week, no one from the insurance company has contacted me regarding this policy, though I have just been advised the policy will lapse within the next 7 years. To sustain the policy, I am told my monthly premium must go from $28.00 to $420.00, a 1500% increase! My options, as I understand them, is to allow the policy to lapse within the next 7 years (and hope I die before then so my family can collect the $50,000 in insurance), or I can terminate the policy and accept whatever remaining cash value exists before the increasing cost of insurance erodes the remaining balance and reduces it to 0, at which time the policy will lapse and I end up with no life insurance and nothing to show for the money paid in premiums. This seems like a gross misrepresentation, and my belief is anyone that has invested in such a product has most likely lost their money and/or their life insurance, and may not become aware of it until it is too late to recover and make alternate arrangements. At 64, I am now unable to secure life insurance and will have lost the insurance I was counting on for my family.