- Report: #101295
Complaint Review: New York Life - San Antonio Texas
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New York Life
1212 New York San Antonio, 78212 Texas, U.S.A.
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New York Life major ripoff: Variable Universal Life San Antonio Texas
Im a business owner from San Antonio, Texas. I bought a Variable Universal Life policy from a New York Life agent 13 years ago. The agent told me it was a retirement plan and it would be a good investment for my retirement.
I was paying approximately 500 per month for a 1 million dollar plan. I found out later the guy sells me and my whole family individual polices to earn higher commissions, instead of writing them up on one policy which I wanted in the first place. Long story short, I had a heart attack approximately 1 year ago and i was grateful to have the coverage when I needed it most! Boy was i wrong... I get a letter from New York Life stating I need to send in $10,000 to keep my policy from collapsing. I was very upset as this news compounded my frustration of having to eventually close my business since I couldnt run it anymore.
I didnt have the funds to continue the plan so I had to let it go. I consulted an attorney which was informed by New York Life that there was fine small print in the policy that stated that they required much more premium (which the agent never explained to me) in order for the policy to perform.
For all that money I put in I have zero cash value and have a policy that is lapsed. Where was the company when I needed them? I feel betrayed and saddened. Be smart people and stay away from VUL polices.
Samuel
San Antonio, Texas
U.S.A.
I was paying approximately 500 per month for a 1 million dollar plan. I found out later the guy sells me and my whole family individual polices to earn higher commissions, instead of writing them up on one policy which I wanted in the first place. Long story short, I had a heart attack approximately 1 year ago and i was grateful to have the coverage when I needed it most! Boy was i wrong... I get a letter from New York Life stating I need to send in $10,000 to keep my policy from collapsing. I was very upset as this news compounded my frustration of having to eventually close my business since I couldnt run it anymore.
I didnt have the funds to continue the plan so I had to let it go. I consulted an attorney which was informed by New York Life that there was fine small print in the policy that stated that they required much more premium (which the agent never explained to me) in order for the policy to perform.
For all that money I put in I have zero cash value and have a policy that is lapsed. Where was the company when I needed them? I feel betrayed and saddened. Be smart people and stay away from VUL polices.
Samuel
San Antonio, Texas
U.S.A.
2 Updates & Rebuttals
Mike
San Antonio,Texas,
U.S.A.
thats how VUL works
#2UPDATE Employee
Sun, November 19, 2006
I am sincerely sorry that this happened to you. That it did is almost a surety. Whether or not there was intentional fraud is unlikely - but I wasnt there so I will defer to your statement that it was. That said, VUL is only for those people who will immediately OVERPAY the premium you are charged. Most people use VUL becuase it is a form of Permanent insurance but it is much cheaper (if the client chooses) than tradional permanent products (like Whole Life). I would hope that you have contacted the San Antonio Office for NY Life and spoken to a manager at the firm. I know for a certifiable fact that NY Life has routinely done things for their clients that they were not required to do - like pay benefits on lapsed policies, they paid life benefits to survivors of those who perished at the Trade Center immediately even when there was NO PROOF of death. Give em a call, you might be surprised.
Chester
Lehi,Utah,
U.S.A.
An Unfortunate Misunderstanding
#3UPDATE Employee
Fri, June 02, 2006
I work for New York Life. It wasn't very long after I began working for them (maybe a week) I learned the difference between products - including variable universal life. I can't say whether or not the agent was actually deceptive. I take this individual at his word that he was. However, the problem this individual encountered is somewhat common. When you buy a VUL policy, you can choose how much premium you want to pay each month. The minimum amount you must pay increases each year you own the policy. If all you ever pay is the minimum you will not build enough cash value in the policy to offset the rising cost of the minimum payments. The result? Your policy will collapse.
