If you please help me with some answers to my existing life insurance policy.
I have had this policy for about twenty years .Have not made premium payments
for about ten years but am still getting notices about premiums and such.
Need to pay quite a bit to update policy .Tthis was a 13000 short term rider.
Is there any advantage to pay up premiuns which come do Feb 2000. (at this time
the policy exprires)

Based on what you said the answer would be no. It seems there is some sort of
whole life attached to that or a universal life policy. Chek it out with the
company that it's with.

Beware of signing anything. I had taken out a small insurance policy in
1979, in 1983 the policy should have been terminated. In Nov 98 I had
received for the first time since "83" a bill in my previously married name.
I called the insurance company and told them that this is ridiculous. Since
no payments were made in 15 years wouldn't it seem that I wasn't interested?
Their response was that in the small print I had given them authority to
"borrow" the money  to pay for the premium payments. And that the dividends
the policy earned would cancel out the $8,000 I owed, and not to worry about
it, the policy will collapse and be expunged from their records  in April
99. I thought OK that takes care of that. Surprise, the so and so's sent me
a tax slip stating that my dividend earned $250, this is considered
"Investment Income" and must be declared when I do my taxes. What remains a
mystery is who received all the other T5's and why and how they finally
found me after two name changes, moving through 5 provinces and at least 20
different addresses? The way I figure it, this insurance company is doing a
paper shuffle with the tax department and their pockets must be busting at
the seams with the dollars they have scammed with the help of their tax men
and people that don't read the fine print.

Hi, Barb:

Your post is a little confusing, but I note these items:

Why should it have been terminated?  Was it only because you had stopped paying
premiums, or was there a request by you to terminate the policy?

Then you say:

Regardless of your interest, each permanent policy must contain certain
"non-forfeiture" benefits.  An option (in 30 years I've never seen it to be
automatic) is the "automatic premium loan" feature.  Please, look on your
original application, your selection of this option should be shown there.

Then you say that:

Again, the rates differ from policy to policy, but if your dividend "earned
$250" in interest, the dividend accumulation should be around $5,000.  And,
this doesn't include the cash value of your policy!

So, you paid premiums from 1979 to 1983? And the policy is still inforce? and
you're complaining?  Sounds like a pretty good deal to me, pay for 4, be
insured for 20?

Unfortunately, I don't think that's the entire story.  When you took the policy
out in 1979, did your agent "cash in" another policy?  I fear that more premium
than just the 4 years was paid in, but don't know from where.  Also, re:  them
finding you after all those moves and changes; VERY STRANGE.

But, I don't think that you beef is with the Company, but instead maybe with
the agent that sold you the policy.  Please take your files and make an
appointment to see: your State or Province Insurance Department, the Company
"Complaint Department, and/or an attorney, because the parts of the puzzle that
you've offered up, "don't quite fit."

Good Luck,

Rick Van Cura, Owner
Van Cura Insurance

They had to do something with your money. As per contract, the insurance
was continued. You could have taken the money. The dividends paid the
account were your money and income. If you had paid premiums a few more
years, perhaps, the dividends would have carried the insurance for ever.

To m124:

What does  "The dividends paid the account were your money and income."
mean.

Could you please elaborate?

Thank you,
PFB, CLU, ChFC