INSURANCE
My childhood friend, who started out as an estate agent, currently qualified as an attorney sold life and household insurance policies to fund his university education. Thereafter he specialized in aviation insurance and marine insurance for multi-million dollar aircraft, private jets, luxury yachts and fishing fleets.Somehow I just happen to become one of his clients with a half a million dollar life cover as entry into the insurance for the first time in my life. As youths we were both trod many walks of life to make a living from direct sales, to multilevel marketing, to health product distributors and we even sold saving schemes and funeral cover for one of the larger insurance companies.
Live was good, the cheques rolled in and I felt quite chuffed with my life policy which by now acquired several bells and whistles. It included life with public liability cover, endowment cover with retirement fund and disability benefits. I was convinced that I needed it all, and meticulously ensured that the stop orders were in place and the monthly premium was deducted as per the insurance policy document.
Live was good, the cheques rolled in and I felt quite chuffed with my life policy which by now acquired several bells and whistles. It included life with public liability cover, endowment cover with retirement fund and disability benefits. I was convinced that I needed it all, and meticulously ensured that the stop orders were in place and the monthly premium was deducted as per the insurance policy document.
I often visualized the policy payout in 40 years time and felt the assurance of financial stability. But 40 years is a long time because after the 8th year of payments I started to feel the pinch. My policy had an escalation clause built in and by now I was paying the policy amount plus an additional 30% to cover the increase. I was having second thoughts about this policy and I still had 32 years to go.
Approximately 8 months later my company restructured and I was retrenched. Since no cheques were going into the bank the insurance policy premiums stacked up until I received a notification of non payment three months later. I needed to make an insurance policy payment but my other debts were escalating which was given preference. Then came the policy cancellation notice and I could't salvage the situation so I kissed the policy goodbye. Some two months later my insurance broker childhood friend visited and I recounted the entire story.
"You should have made the policy paid-up" he says. "How the hell should I have known that, if you never told me" says I. "But you never asked" said he. "Ok I will try to reinstate the policy and make it paid -up" he added.
I agreed since he explained I wouldn't have to make additional payments. The monies invested into the policy would mature and payout at end of term but it was gonna be a far cry from a half a million dollars.Unfortunately for me, he couldn't retrieve the cancelled policy and the 8 years of premiums went down the toilet. Sad but true. By now my car's insurance was in arrears and intended to make good on the policy only to received a letter of policy cancellation.
Approximately 8 months later my company restructured and I was retrenched. Since no cheques were going into the bank the insurance policy premiums stacked up until I received a notification of non payment three months later. I needed to make an insurance policy payment but my other debts were escalating which was given preference. Then came the policy cancellation notice and I could't salvage the situation so I kissed the policy goodbye. Some two months later my insurance broker childhood friend visited and I recounted the entire story.
"You should have made the policy paid-up" he says. "How the hell should I have known that, if you never told me" says I. "But you never asked" said he. "Ok I will try to reinstate the policy and make it paid -up" he added.
I agreed since he explained I wouldn't have to make additional payments. The monies invested into the policy would mature and payout at end of term but it was gonna be a far cry from a half a million dollars.Unfortunately for me, he couldn't retrieve the cancelled policy and the 8 years of premiums went down the toilet. Sad but true. By now my car's insurance was in arrears and intended to make good on the policy only to received a letter of policy cancellation.
By now I've had more of insurance that I could bear and decided to cancel or rather make them paid-up. So I called householders insurance and there is so such thing as paid-up with short term insurance. Then I called and motor plan only to hear that the motor plan is part of the car's monthly installment and that if I cancelled it, I cannot reinstate it.
Since then I became very disillusioned by insurance policies but I could do without it, I needed the medical health insurance, if not for myself, at east for my family. Insurance is a grudge purchase and when your chips are down, you feel the pinch. However insurance rules has changed substantially since then, and there is a lot more leeway.
Since then I became very disillusioned by insurance policies but I could do without it, I needed the medical health insurance, if not for myself, at east for my family. Insurance is a grudge purchase and when your chips are down, you feel the pinch. However insurance rules has changed substantially since then, and there is a lot more leeway.
For example, my medical plan insurer sent me an sms to advise me my last premium wasn't paid thus my policy has lapsed but to reinstate it, I just had to sms the word "cover" back to them then I would be covered and the following month hey would withdraw two premiums.
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