Life insurance fraud yes or no? -

My dad age 70 had a 50k whole life policy and in 04 was sold a UL with a DB of 100k. We were told the $2900 premium would cover the new policy today they received a letter from NYlife that their target premium is $14,000. I know you life insurance guys cant tell nothing definitively w/o illustrations. I am asking for a copy of an inforce illustration run at current and guaranteed rate at the suggestion of a friend. I just want yout take on the whole situation if you understand what is going on and what you think will hapen to the policy. UL is tricky that way. See, it's SOLD with rates based on PROJECTED EARNINGS, which are NOT guaranteed. So, when the stock market is doing great, 20% returns, you get much smaller premiums. When it's doing average, the premiums are higher, and when it's tanking, premiums go through the roof. It's easier to sell UL than whole life, because clients tend to hear what they WANT to hear, even when EVERYTHING is properly disclosed - which I'd bet dollars to donuts, it was. Bottom line - the odds are ALWAYS going to be in favor of the insurance company. Life insurance for a 67 year old man - with, frankly, not too many years left - is GOING to cost a way lot! $14K is NOT unreasonable, for that payout, for a 70 year old. That's JUST the way it is. I think if your dad can afford those premiums, his NEED for the life insurance probably isn't really there. You were churned and burned, a classic example of greed in the industry, which is still ongoing. I'm sure the first policy was drained of all it's cash, or most of it, so it will lapse. The new policy value was illustrated with a lower premium to make the sale, and as they say, a sucker is born every minute..Contact the company and put a complaint in against the agent, and get the original policy put back to whole.. What will go on is that if the 14k isn't paid, there will be NO life insurance WHATSOEVER!!! The 2900 was enough to cover cost of insurance from 04 til now. As of the writing of the insurance company, they are saying that it will now cost 14k to insure him- this year. Next year it will go up. Is this fraud? No. It was done because this is the way most companies work. They do not explain the policy to you they just say "here is your policy, please sign here." The policy has paid itself out by using ANY and EVERY penny that was in the cash value. Sorry your dad was taken by this company. Hope the person you have talked to works with the company that sells ONLY level term insurance. First of all, I am not saying the agent did you wrong nor am I saying the right thing was done for your dad. 2nd there are a few companies that you can get a UL policy for a 70 year old man for a annual premium around $2900 and the policy is guaranteed not to lapse as long a premiums are paid, so it is probably even less if your dad was 67 at the time. Have your dad call the company or agent and have them breakdown his "gauarantee" illustration. Your friend is right, the guaranteed rate is the key. Unfortunately I don't sell NYlife and haven't ran across many of their policies. If so, I could probably tell you what is going to happen to your dads policy. Whole life could also be sold with assumed dividend rates that sometimes do not come true, making the plan fall apart. If there is a problem, it does not revolve around WL vs. UL, it is in the way the policy was structured and followed-up on in the last 3 years. This would not necessarily constitute insurance fraud, but it might have been an improper replacement. The target premium is really irrelevant to the consumer. That's the figure the company uses to determine how much the agent or broker gets paid. There is nothing in your question that tells me the $2900 premium isn't sufficient, but your inforce illustration is a wise first stop. Please note while you are reading it that most UL contracts can adjust their interest rate AND their internal expenses. I used to support many other brokers, some from NYLIC. You can email me through Y!A or through our website if you need further help.