My parents told me when I was getting ready for college I had an insurance policy that would mature at 18 that I could cash out for 50k for college. My grandfather had set this up and he passed a few years before I graduated, no one else knew anything about it until we got a letter in the mail. This is what reminded my parents. The letter said the policy was only worth like 1500, which I should have cashed out but was disheartened because I thought part or all of my college was paid for.
I didn't cash it. I forgot about it. I just received a letter now 8 years later, saying they were paying the monthly payment out of the policy and have now take out a loan to pay the monthly payment. They say I now owe them $4,000 for the past 8 years of the policy. I never gave them permission to do this and never agreed to the original policy. Can I tell them I'm not paying it? Or am I actually liable for this? I'm not sure what the actual policy was, I will have to find the letter again.
Gerber life insurance policy that would mature at 18, told I owe thousands after I didn't cash it at 18.
byu/4am-politics inInsurance
Posted by 4am-politics
3 Comments
Did you contact them and ask for an explanation?
That would be truly awful if it turns out a company that was suppose to provide you with money at the start of your adulthood, actually demanded that you pay
It sounds like you received a letter form your parents demanding payment.
If they premium was being paid out of the policy, why do you owe THEM $4000? Are they trying to recover the benefit that was used to pay the premium. That wasn’t theirs to use.
Ya, NO.
Contact the policy issuer and find out what has been going on, there may be no value, but it the policy was pair form the benefit. you dont owe your parents .
Sorry you have such a crappy situation.