Read fine print on insurance policy
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A reader bought a $20,000 life insurance policy in 1991 when he was 65 years old and said he was assured the premium would remain the same -- $835 a year.
And it has been -- until now.
He received a letter notifying him that the premium for this year is $2,200, an increase of more than 150 percent.
He called the insurance company. A customer service representative said the policy was for 20 years and will expire late next month. If he wanted a new $20,000 policy, he would have to pay the higher premium.
Then the insurance company sent him a letter saying he could have an extra month to think it over if he paid them $500.
The man, a retired steelworker who became a commercial driver and now does maintenance work, briefly thought about the "offer" but ultimately agreed with his wife that it wasn't worth it.
When he called other insurance companies, he found out that some don't write policies for anyone older than 74. He is 85, in good health, isn't overweight and takes no medications. He is still looking for an insurance policy he can afford, but doesn't want insurance agents contacting him.
He and his wife already have purchased a burial plot, vault and headstone.
His wife, whose insurance policy expires in March, said they have savings bonds to cash in to cover the funeral expenses of "whichever one of us goes first."
Her advice:
"Save your money and have plenty of it."
And always -- always -- read the fine print.
A magnifying glass will help.
Everything about the closing for a South Hills home last spring appeared to go well.
Then the new owner received a bill for $730.94 from the Pennsylvania American Water Co. for using 51,800 gallons of water.
First Published January 20, 2011 12:00 am
