Policy reinstated: A welcome update to a difficult story
We recently discussed how payment by check is a method not going away anytime soon despite technological advances. Though no longer the only payment format, checks are still preferred by many business owners – from landlords to utility companies.
As people write fewer checks in this high-tech age, consumers are more prone to costly drafting errors on the occasions when checks are required. We previously reviewed the case of an 87-year-old Massachusetts woman who had her policy cancelled after inadvertently coming up short $98.92 on her premium check.The situation became more urgent when the woman developed dementia, forcing her to incur thousands in care costs.
Today, we’re happy to report on a happy follow up to the previously cancelled premium and her updated story.
Her insurer has now agreed to reinstate the long-term care (LTC) policy, which was worth nearly $600,000 in benefits. In a call to the policyholder’s daughter, an executive waived the thousands in outstanding premiums.
As great as the news is, the resolved issue only came about once her story made the headlines. If you make a similar drafting error, unfortunately, you may not be solucky.
Given this reality, let’s reiterate some important points for LTC policyholders:
- Double- or even triple-check premium checks
- Sign up for automatic online payments if possible and verify the necessary deductions are correctly made
- Ensure precautions are in place, such as copies of correspondence being sent to loved ones
Source: The Boston Globe, “Insurer reverses decision, restores elderly woman’s coverage,” Sean Murphy, July 14, 2017