Friday, November 25, 2016

Insurance company increases the minimum monthly premium

A policyholder bought an investment linked policy that required him to contribute $833 a month for 3 years and to reduce the premium to $250 a month afterwards. After one year, he received a letter from the insurance company informing him that the minimum premium after 3 years has been increased to $500 a month. There was a term in the policy contract that allowed the insurance company to set the minimum and maximum premium under the policy from time to time.

Nevertheless, the policyholder felt that the increase in monthly premium was unfair. He asked me if he should terminate the policy or if he could lodge a complaint about this increase in minimum monthly premium. He did not want to have to save $500 a month for the next 30 years.

He would have to suffer a large loss if he terminates the policy now.

What is the name of the policy? You can find the answer in

1 comment:

Anonymous said...

He should lodge to MAS

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