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My ex wanted me to provide her with a 10-Year term life insurance policy, which I felt was really greedy, considering she received our home in the divorce, a home where I had made all the mortgage payments.
The problem was that she and USAA representatives failed to alert me that a 10-Year term life insurance policy is actually a whole life insurance policy in disguise. And who benefits by this confusion in terminology? Why USAA of course!
After duly paying the monthly premium of $82.80 as agreed, via an automatic deduction from my checking account, for 120 consecutive payments, the monthly premium was INCREASED from $82.80 to $1,119.94 a month, effective with the April 27, 2019 premium payment. I was suffering from depression, and did not open very much of my mail. Most of my bills are auto pay, which included my USAA life insurance premium (for a policy that I assumed was terminated after 10 years).
Slowly, I was starting to recover from my depression, only to discover that I had paid a total of $10,079.46 in premiums to USAA for a life insurance policy that I assumed had lapsed after ten years.
As a loyal 43-year USAA customer, with only two claims during that period, I assumed that USAA would refund the outrageous monthly premiums that I had incurred for nine consecutive months. Not only was that not the case, but I was informed of this decision by a lower level USAA employee in a message left on my iPhone. I called the lady back and left a message. She never returned my call. And no one from USAA has called me to apologize for their total lack of concern for my loss. Over $10,000 lost at the hands of MY INSURANCE COMPANY, who I’ve been paying for 43 years to protect me from loss. You’ve got to appreciate the irony here. Sad but true.
When I called to close my USAA savings account, and explaining why I was doing so, the USAA representative mentioned that another USAA customer had also closed their USAA savings account for the same reason. So, I wonder how often this occurs? A letter does not necessarily mean that two way communication is achieved. The letter must be opened and read for communication to occur. I never saw the letter informing me that:
1. USAA writes TERM policies as whole life;
2. USAA increases premiums significantly,
but makes little effort to communicate
the drastic premium increases with their
customers. Why would USAA desire to
cease making excessive premium profit?
3. NO PHONE CALL, NO EMAIL, and NO
TEXT. No FOLLOW UP whatsoever. And
most certainly no apology nor thinking
about protocols to change to INSURE
that their customers are PROTECTED.
term insurance when it is written as a
whole life policy with EXCESSIVE
premium increases.
5. Require the policy holder to OPT IN to
the new premiums, rather than OPT OUT

Unfortunately, USAA is just another insurance company. They employ the same poor business model as their competition selling life insurance. USAA should be better than this. WE KNOW WHAT IT MEANS TO SERVE should be much more than a business slogan; it should be a way of life at USAA. Sadly, USAA refuses to refund the excessive premiums or to initiate beneficial changes to their business model.

BUYER BEWARE!!!!!

2 REPLIES

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Hello @The Baron1, I'm so sorry for the experience you've had with your policy. This is definitely not the kind of service we want to provide. I want to make sure that we're addressing your concerns. I want to confirm I've forwarded your message to the best team who can help review this further on your behalf. Our team will be reaching out to discuss more info together. -Lori G

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This concerns me greatly. I have had a term policy for almost 20 years and must choose within the next year whether to extend into a whole life policy. I took it out as a single mom while active duty. I am disabled but still have my daughter on the autism spectrum. This is concerning as to the huge premium jump. I couldn't do that. Very discouraging indeed.