Complaint Review: American Income Life Fraud? Not True!

It would be unreasonable to start something of this magnitude and not drop back in once in a while to see how everyone is doing.

Let me begin by saying, "I do not have issues with most AIL agents because they are doing exactly what they've been told". It has been my experience that when an insurance company recruits someone from the customer service department of Taco Bell, trains them on 6 consecutive Saturday afternoons, promises them a 6-figure income and unleashes them on their (used instead of the word "there" for Steve from Racine, Wisconsin)family and closest friends, bad things are going to happen.

The nearly 200 cases I had against AIL in California all settled late last year. No one made a great deal of money but all went home happy. I don't know of any AIL agents who lost their insurance licenses or the closing of any agencies. I took a great deal of pride from the fact that when presented with the truth, minus
any emotion and/or animosity, AIL representatives reached for their checkbook and asked for the bill. That is a fact that cannot be disputed.

It is a fact that AIL/NIL has lost the trust (and business) of a large number of labor unions and I have a sneaking feeling this trend will continue.

Term vs. Whole Life, costs vs. cash value, right vs. wrong, are all issues that will never be settled globally. Agents sell the products they are trained to sell - in the way they are trained to sell them. This has been going on for years and I don't expect for it to change anytime soon.

At this very moment, I do not know if any law firms (such as Milberg / Weiss, Heller Ehrman or Anderson, Kill and Olick) plan to do anything with this insurance company. Because of my experience, I would say there is a pretty good chance of it.

Being bound by a somewhat all-inclusive gag order, I cannot discuss this case in any more detail. I thank everyone for their (there's that "their" word again} watchful eye and concern for the unknowing labor union members who might (or might not) have been lied to by someone whom they thought could be trusted.

Keep up the good work.

Mark J. Colbert
Life Insurance Fraud Investigator
www.markcolbert.com

We found his unpaid cell phone on the bridge next to his unpaid truck... And so so ends another career at NATIONAL OUTCOME...
No one knows for sure if he jumped, that would not be covered by his accident policy and the others will be excluded if he bought them in the last two years.

Out of respect to our fallen comrad who thought he could take Sunday off, I Dumron Declare that all agents call from the office from 2-9PM tonight (Sunday). I want 8 Powersh*t days this week and if you don't know how just ask Jimmieachi, he wrote $10 Million Dollars and never left W. Henrietta Rd. in one year! Wink.. Wink..

If anyone else is thinking of being negative I want to know about it now, I caught Leo with our secret microphones and miniature cameras.
The product maybe crap but get out there and sell more of it.
Yes we all agee that weare way over priced but how else can I make the payments on my Navigator?
This is an excellent time for the next smart guy to stand up to the plate and play manager.
Who's next?

We are always hiring and we never have any more self employed contractors than we did last year.

Who is the retard?
Didn't your mother teach you better than that? Were you brought up in a broken home? Sticks and stones can break my bones but names can never hurt me. You are always calling people names brother that is not nice.
Be nice brother. Have you asked for forgiveness from the Lord? Have you been to an AA meeting? Try one brother they may be able to help you, you need it.
Repent!
You are failing terribly and if you understod your P&P report you would do what Leo did. Give him a call. He wised up.
If you are always so negative maybe it is you!! Did you ever wonder why more than 1/3 of your business falls off within 6 months? I'll tell you why- it is because people can tell a liar when they see one. After you leave they cancel.
I will never allow you to be a MGA, NEVER!!!!! Because you don't get it, you could not teach and you can't manage three salesman, as a matter of fact you can't even manage yourself.
Ask MGA's with 80-90% retention rates how they do it, you be the student. It is hard to learn anything when you think you already know everything.
Go fishing with Jimmie your closet friend but that is not helping your paycheck. Your negativity is at a crisis, any more negativity and you will get promoted out of a job like so many before you. Sober up, get a job...

Who is the retard?
Didn't your mother teach you better than that? Were you brought up in a broken home? Sticks and stones can break my bones but names can never hurt me. You are always calling people names brother that is not nice.
Be nice brother. Have you asked for forgiveness from the Lord? Have you been to an AA meeting? Try one brother they may be able to help you, you need it.
Repent!
You are failing terribly and if you understod your P&P report you would do what Leo did. Give him a call. He wised up.
If you are always so negative maybe it is you!! Did you ever wonder why more than 1/3 of your business falls off within 6 months? I'll tell you why- it is because people can tell a liar when they see one. After you leave they cancel.
I will never allow you to be a MGA, NEVER!!!!! Because you don't get it, you could not teach and you can't manage three salesman, as a matter of fact you can't even manage yourself.
Ask MGA's with 80-90% retention rates how they do it, you be the student. It is hard to learn anything when you think you already know everything.
Go fishing with Jimmie your closet friend but that is not helping your paycheck. Your negativity is at a crisis, any more negativity and you will get promoted out of a job like so many before you. Sober up, get a job...

Who is the retard?
Didn't your mother teach you better than that? Were you brought up in a broken home? Sticks and stones can break my bones but names can never hurt me. You are always calling people names brother that is not nice.
Be nice brother. Have you asked for forgiveness from the Lord? Have you been to an AA meeting? Try one brother they may be able to help you, you need it.
Repent!
You are failing terribly and if you understod your P&P report you would do what Leo did. Give him a call. He wised up.
If you are always so negative maybe it is you!! Did you ever wonder why more than 1/3 of your business falls off within 6 months? I'll tell you why- it is because people can tell a liar when they see one. After you leave they cancel.
I will never allow you to be a MGA, NEVER!!!!! Because you don't get it, you could not teach and you can't manage three salesman, as a matter of fact you can't even manage yourself.
Ask MGA's with 80-90% retention rates how they do it, you be the student. It is hard to learn anything when you think you already know everything.
Go fishing with Jimmie your closet friend but that is not helping your paycheck. Your negativity is at a crisis, any more negativity and you will get promoted out of a job like so many before you. Sober up, get a job...

Who is the retard?
Didn't your mother teach you better than that? Were you brought up in a broken home? Sticks and stones can break my bones but names can never hurt me. You are always calling people names brother that is not nice.
Be nice brother. Have you asked for forgiveness from the Lord? Have you been to an AA meeting? Try one brother they may be able to help you, you need it.
Repent!
You are failing terribly and if you understod your P&P report you would do what Leo did. Give him a call. He wised up.
If you are always so negative maybe it is you!! Did you ever wonder why more than 1/3 of your business falls off within 6 months? I'll tell you why- it is because people can tell a liar when they see one. After you leave they cancel.
I will never allow you to be a MGA, NEVER!!!!! Because you don't get it, you could not teach and you can't manage three salesman, as a matter of fact you can't even manage yourself.
Ask MGA's with 80-90% retention rates how they do it, you be the student. It is hard to learn anything when you think you already know everything.
Go fishing with Jimmie your closet friend but that is not helping your paycheck. Your negativity is at a crisis, any more negativity and you will get promoted out of a job like so many before you. Sober up, get a job...

Tom.."Leo"...1) if I WERE Hal, do you think I'd name myself "ha ha"? You are the dumb one, not me. 2) YOU want to talk about repeating yourself????? 3) You still didn't respond to my challenge: why isn't YOUR name & address on here, Spidey? 4) Maybe you were too high to pay attention....I said I am an EX EMPLOYEE! and 5) It's funny, I spoke to Leo yesterday....he is definitely not "Leo" on this website.

To everyone else..... this man is getting desperate.... talking s**t to people who haven't even responded on this website. I am done responding to his moronic nonsense. For the last time....GET OVER IT, TOM.

I need to get back to work.

FYI... Brian Keenan accused me of making fun of people who are disabled and in a bad $$$$ situation...not true...since I am BOTH.

I agree they are the most dishonest bunch of thieves and liars I have ever seen. I helped fire my boss by wispering into his boss's ear, now I regret it. I thought it was him, now I realize it is the company. Threats, lies, deceptions, you get it all at National Income. The biggest lie I would like to warn evryone is the one where they claim to give you free union leads every two weeks.

The reality is about 24 leads, few new, some seen 6 times already over the last three years, some are Globe leads, not union leads every two weeks at the most. Some were seen last week by someone else and some two weeks ago and told the agent no I don't want it.

Reality- go get your own referrals because I've watched many agents go 2-3 months at a time without any leads. To my old friend that got promoted to Pa. Greg, what happened to your numbers? I remember you said durhon promised you a mga in 6 months? Looks like you are done!
Ha Ha Hal,

You are the joke, you need to be told you have a job, you don't know the difference.

I agree they are the most dishonest bunch of thieves and liars I have ever seen. I helped fire my boss by wispering into his boss's ear, now I regret it. I thought it was him, now I realize it is the company. Threats, lies, deceptions, you get it all at National Income. The biggest lie I would like to warn evryone is the one where they claim to give you free union leads every two weeks.

The reality is about 24 leads, few new, some seen 6 times already over the last three years, some are Globe leads, not union leads every two weeks at the most. Some were seen last week by someone else and some two weeks ago and told the agent no I don't want it.

Reality- go get your own referrals because I've watched many agents go 2-3 months at a time without any leads. To my old friend that got promoted to Pa. Greg, what happened to your numbers? I remember you said durhon promised you a mga in 6 months? Looks like you are done!
Ha Ha Hal,

You are the joke, you need to be told you have a job, you don't know the difference.

I agree they are the most dishonest bunch of thieves and liars I have ever seen. I helped fire my boss by wispering into his boss's ear, now I regret it. I thought it was him, now I realize it is the company. Threats, lies, deceptions, you get it all at National Income. The biggest lie I would like to warn evryone is the one where they claim to give you free union leads every two weeks.

The reality is about 24 leads, few new, some seen 6 times already over the last three years, some are Globe leads, not union leads every two weeks at the most. Some were seen last week by someone else and some two weeks ago and told the agent no I don't want it.

Reality- go get your own referrals because I've watched many agents go 2-3 months at a time without any leads. To my old friend that got promoted to Pa. Greg, what happened to your numbers? I remember you said durhon promised you a mga in 6 months? Looks like you are done!
Ha Ha Hal,

You are the joke, you need to be told you have a job, you don't know the difference.

Thanks Mark,
For your efforts and knowledge on this subject. The more I read the more I learn the more I like others to realize what scammers these guys really are.

After reading this site for a while it is quite simple to see a pattern. The hiring managers use different names in their responses but always use the same words.

DISCRUNTLED EX- EMPLOYEES, WHINNERS, FAT, LAZY, LOSERS, POT SMOKERS, the same ones they thought were the winners when hired, people that couldn't make it anywhere else anyways.

The people that write about what was promised compared to what was delivered is almost the same in every State.

Promises of six figure incomes with little to no work, and working 80-90 hours a week driving 1000-1500 miles a week and spending as much or more in expenses as they earn in commisions. 9% of agents last one year.

Most of the better ones make about 30,000. They are always HIRING. They run constant ads in the paper, monster*com, career builder*com and need to hire at least 4 people every week. They have closed shop in many areas.

Many more to come. Many unions have asked them to quit calling their members. Their Local 277 is a FRAUD. They have no union stewards or grievance forms. They do nothing to help the union member. The cowards don't even list their phone number or address on their union card or phone book.

We need private investigators, attorneys to step up to the plate and file class action suits. They have been getting away with this for too long. NYS is now investigating them, I hope they do something since it took less than 4 years to burn the union bridges in NY.
Thanks Again for the help.

Or are you out looking for a new job? I am sure you checked those quotes and found them to be accurate. How do you feel about your 500,000 ten term for $427 per month now?

Tim,
I hope you still have your job. I did a simple quote from a select quote. c*m for a 46 year old male in good shape in NY for 3 different lengths of term. 10 year, $500,000 ranging between $66.15 per month to $86.13 per month with 5 companies in between those prices to choose from. You say your book charges $427 per month! Whoa! is right!!! For your 10 year term you say they charge $427 per month, if I subtract $66.15 for a comparable product I am saving $360.85 per month or $4,330.20 per year and $43,302 over that same ten year term.
Now the same type of comparison for a 20 year term with 5 companies at $500,000, between $104.85 per month and $133.11 per month.
Lastly a 30 year term with 5 companies and $500,000 coverage term between $210.44 month and $295.31 per month.
So, as you can see a 46 year old can get a 30 term much less expensive than your 10 year term.
I would love to see what your book rates are for a 56 year old.
And by the way a 46 year old male can get 1,000,000 10 year term through 5 companies ranging between $124.65 month and $168 month.
And 1,000,000 20 year term between $202.05 month and $247.08 month.
And he can even get a 30 year term through 5 different companies ranging between $416.50 and $583.63.
Imagine that! What you call garbage, 30 year term, 1,000,000 of it for $416.50 per month and twice the value of your $500,000 10 year term for $10.50 a month less and 20 years more of no rate increases. If my math is wrong please show me where. Like you said I've got nothing on you. Did you take math?

Steve says, "Term insurance is garbage. ITS A TERM, IT GOES AWAY WHEN YOUr HEALTH worsens. 13% of term pays."

It is funny to suggest that term is garbage, when one of your "paid up" options is indeed term.

Which leads into when Steve said, "He can take a PU option at 65 and be done with it."

What exactly do you mean by "be done with it"? Are you explaining to your clients what the "paid up" options are? As it was explained to me, the client can choose either an Extended Term option, or a Reduced Paid Up option.

In the extended term option, at age 65 the client can take his cash value and buy an extended term to his policy. This allows the client to keep the face amount of their policy up until the specified term ends. But what happens after this term ends? If the client out lives the term, are they left with nothing?

In the reduced paid up option, at age 65 the client can take his cash value and buy reduced protection up until age 100. So a $10-15,000 funeral benefit will now be reduced to considerably less? Will it possibly still cover the rising costs of a funeral by that time?

If I understand this correctly, imagine the clients' response when they find out about this at age 65. All I can say is, glad I left when I did, seemed rather misleading to me.

Yesterday term was garbage and today it is good temporary protection. You are learning. Pay attention. There may still be hope. Your term is priced higher than any I have been able to compare. There may be more expensive term but I have not found it yet. Your quote therefore means nothing.I suggest anyone get at least 3 quotes from 3 companies, you will find the costs are all over the books. There are adds on tv, radio, and internet for a fraction of the one you pulled from your pitch book.

Any company that needs gimmicks and tricks to get into homes of unsuspecting union workers who think their union rep is coming over to get those free benefits should be ashamed of themselves.

They were usually told something like we must witness your signature so that the benefit 1000 or 2000 won't become taxable. In reality it almost NEVER is.May be taxable and may not be taxable mean the same thing. Can you show me any law that says it will be taxable?
It's all about the card? What is ? That is just a trick or gimmick to get in the home. Most of our cards don't say that a rep will call you, better check a little closer on that one.

Now to the bluff! Realistically a 30-35 male with a wife and 3 kids needs a $250,000- $500,000 protection for his family and could get that in good shape for $25-$60 per month on a 20-30 year term.Lets say he is 35 and gets a $500,000 30 year term for $60 per month. He has coverage for natural or accidental death until he is 65 and most likely his kids have graduated from college. Now he has less need than when he was 35 with a new mortgage and family.

He could buy a 3000-7000 WL (whole life) funeral benefit that would cover him for cremation or funeral for a fraction of the $43 you are talking about. If he died anytime between 35 and 65 his family would receive $500,000 if you subtract your inflated funeral benefit of 13,000- 25,000 the family still has at least $475,000 to pay off the home, pay for college and any bumps along the way. A fool who may have chosen to buy a $30,000 WL policy would have $5000 left for the family to live on plus maybe the 3000-10000 term that his union gave him. How long will that last.

Have you ever seen a family lose a home, go on Social Security, welfare, food stamps because the family was underinsured? I have. It happens frequently. Sometimes they go right back to Mom and Dad's if they will take the fools.
When you say the only thing you need is a $30,000 funeral benefit NOW I wonder why? Are you going to die now? Do you know when you are going to die? Does 46 sound old to you?
If the 35 year old who bought the $500,000 policy at 35 and died at 46, he certainly gets back a lot more than he paid in, most would consider that a young death and his family gets a half million tax free money, pay off the house, etc.

If that guy bought the $30,000 WL that is all it would pay and the family would be in poverty. If the guy who bought the $500,000 policy at 35 died at 64 his family still gets the $500,000 and for the whole time he had his insurance his premium rate never increased a penny.

It's obvious to me that you are single and young and believe what they taught you in training, the longer you stay the quicker you will learn the truth.

I'm surprised you never mention the accident policy that you are trained to usually try to sell in addition to that funeral benefit and trained to confuse as a single policy. In my opinion the best part of what your company sells but fails to explain that it is a separate policy. It changes from State to State and costs a fraction of the funeral benefit and pays when you are alive if you have an accident or injury. Anyone can call home office and cancel one and keep the other, what would you do?
Ask your co-workers how many of them own the accident policy and how many own the WL. We were not allowed to sell the accident without the WL unles you were an agent.I never met an agent that wanted to buy a funeral (WL) policy and did not want the accident policy. I met hundreds who bought the accident but not the WL. Why you suppose that is? What would you like to sell your brother, sister, mother, father? Do you treat your union brothers how you would like to be treated? How you would like your family treated? Have your parents read this and ask them their honest opinion.

Tim is right and he is not at the same time.

I do not have any doubts AIL agents misrepresent sometimes what they sell, sometimes intentionally, sometimes not.

AIL agents I believe sometimes misrepresent because AIL is so freaking ungrateful to them, that not even base salary is offered -since agents do not really work for AIL, they are self employed- so agents have to eat...

Second reason, the agents sometimes do not really understand the client's REAL needs, like schooling for kids if that parent dies.. in that case WHOLE Life is garbage, not enough money!

Term is needed for specific periods of time: Mortgages, kids in school, etc... but it expires either you want it or not at 65 years old when those resposabilities are gone and the person is old and risky to insure, then is when Whole life becomes important.

AIL is categorized to sell COMPLEMENTARY insurance products, and the misrepresentation lies on the claim that AIL's Whole Life can protect every indivudual of every age, but it has to be combined with TERM for special for people withbig finiancial responsabilities, and that is something the AIL agents fail to highlight most of the times--due ignorance, lack of vision or money hunger sometimes--

I have insurance through AIL and term at work... AIL has always paid my claims, that is the good side of it, the bad side? Misrepresentation that only Wholelife is good for everyone!!!!

Of course we dont need BD in writing. That is a gimmick to get into there house. The letter we send to all the union members say, as I have one right here. "IT IS NOT NECCESSARY TO RETURN THE CARD.THIS BENEFIT STILL COVERS YOU. BUT THE VALUE IS TAXABLE TO THE ESTATE. IF YOU RETURN THE CARD A REPRESENTIVE WILL CALL YOU, PLEASE TAKE A FEW MOMENTS AND LISTEN. THE ENDORSED BENEFITS MAY BE VERY IMPORTANT TO YOU AND YOUR FAMILY.

ITS ABOUT THE CARD, THEY FILLED OUT. The LETTER THAT CAME WITH THE CARD THAT WE READ OUT LOAD IN THE HOME. The letter says in more detail we WILL be trying to sell them something.

Oh ya and about term. I like that but you forget you have a salesman right here. Im calling your bluff now. And im looking in my AIL rate book. 46 year old can 500,000 in term for 427.00 dollars a month. Whoa! Assuming hes in spotless health and wont get rated a dollar per thousand(twice what i quoted). Oh and thats 10 yr RnC to boot so his cost goes up every 10 years by 45% and age 65 will probably be dropped and his money wasted. But if I show him Whole life he can get simply a 30,000$ Funeral benefit for 43.34 a month. He can take a PU option at 65 and be done with it. At age 46 you should have all that term from work dont need all that protection. The only thing you need is your funeral taken care of NOW.

Term is good temporary protection. The company knows our Union members have this already. We fill the gaps in there personal insurance (Funeral). That term is never going to pay for this 13-25,000 dollar expense.

Next are you going to tell us the one about how we have never lost a union? Never been told to quit calling its members? Check back with you in a year if you are one of the 9% who last that long.

And, oh by the way- must a union local 277 licensed sales rep come out to a union members house to witness or verify a signature to designate a beneficiary?, or can't it be done done in the mail? If they choose not to designate their beneficiary doesn't the free $1000-$2000 accidental death benefit pay on a union member, current or retired anyways? Would that benefit not pay the insureds estate?

Any honest hard working union member with a tape recorder who asks these story tellers these questions will stand a good chance of proving misrepresentation, a violation of the State insurance department.

How were you trained? Do you understand what a scam is? If term insurance is garbage why does your company sell it? If you ever need to go on Social Security Disability, why do they ask if you have any life insurance with a so-called cash value? Term life has a great value, not a cash value.

Ask any of those 13% you are quoting, in many cases for the approximate price of your policy that includes about a $10,000 funeral (whole life natural death) benefit, that same union worker could have purchased a $500,000 term benefit (term natural death) that could last 30 years, enough to last his life while raising a family, or for much less he may only need a $100,000 policy.

Either way after the funeral is paid and his beneficiaries have another $90,000- $490,000 to pay off the home and send the kids to college. Garbage? How old are you? Do you have a family? Would you protect your family only with the product you sell?

If you did, wouldn't you buy a significant one somewhere else to fill in those gaps that yours does not cover? Out of the hundreds of agents I knew while working there, I did not know one that protected his family with just the products we sell.

I can't find term insurance any more expensive anywhere. Can you? Did you mean to say that all term is garbage or just the kind you sell at rediculous prices.

Term insurance does not go away as your health worsens- it goes away at the end of its term. Sounds like you are misrepresenting or twisting. You can buy term insurance from AIL for a term of 10 years.

Other companies sell term policies for 1,5,10,20,30 years depending on the State and the company. In some cases you may find a 30 year term cheaper than your 10 year term. At the end of the 30 years if the guy became uninsurable he may not qualify for a good rate again but raised his family on a smarter budget and won't have as much need for a big policy.

During that entire 30 years he wisely protected his whole family in case he died accidentally or naturally. There are also companies that specialize in insuring the other wise uninsurable for extra money.

Some have only 5 health questions. How many on your life application? 25 or so? Ever had a decline? Active union members certainly don't know all about the company if they go to the union meetings, after all they have not been schooled in insurance and have not passed State exams to sell it.

They are hard working union folks who trust their unions when they sign a letter saying fill out this card for your no cost accidental death benefit. They have no idea what is coming. Take any of their life policies and compare them to any other life policy through any other company and see who has the better deal.

Many people are confused as to the differences between natural death and accidental death as silly a that sounds to a licensed sales rep. I have met many union folks that thought if they died of a hearrt attak they would get their accidental death pay out that looks much higher than their funeral benefit that they may actually get uncontested if they had the policy for over two years in NYS.

The 10,000 may pay for the funeral but nothing else for a house or wife or education for kids. I had to leave after talking to people like you I literally got sick. How could I be associated with people like you that take advantage of people every day and think you are so smart while everyone else is so dumb. As for your statistics that claim 13% of term policies pay out, where did you find that?

Also what percentage of whole life policies pay out? Isn't it true that most owners of whole life eventually stop paying on their policies and lose them before death?

Another half truth or misrepresentation the way I would look at statements like that.If you have family I hope I taught you something today about protecting them in case you died before you set aide a million or more that your boss wants you to believe you will earn selling these products.

Hopefully some union members will read this, print this and ask their insurance agents and union officials about it, you won't have anything to fear if they tell the truth.

You dont know what your talking about. The company AIL has a strong relationship with Labor. At union meetings, AIL reps are present to go over the benefits of the union "Hour Power program". Active union members who attend the meetings know all about the company.

As per your claim that agents like myself misrepresent? This is false. There is no misrepresenting going on at all. You want misrepresenting? Call up Prudential. This is a company that pays its claims. I know I fill them out. Cancer, Accident, Life they pay them all.

High pressure sales is high pressure sales.
The reason it exists is because people are too incompetant to take care of things like there funeral. I once had a prospect tell me smugly"I can set aside a dollar a day myself" I replied You could.....but will you? He said no and I sold him. Everything we say is ABSOLUTELY TRUE about the Freedom of Choice funeral benefit. Term insurance is garbage. ITS A TERM, IT GOES AWAY WHEN YOUr HEALTH worsens. 13% of term pays.

There is no employment scam at AIL. You either make it, or you dont. Very simple. I have 2 training seminars a week with my mga. They invest alot of time and money into making there agents successful.

Have you investigated National Income owned by AIL? Where can ex employees report things that they think are wrong? How about the Local 277 that is supposed to be a union for their employees? Do you know how to report them to the National AFL-CIO? I know several ex-employees interested in a class action lawsuit as we were denied leads until we quit or got fired while the recruiters keep hiring and giving leads to new fools. Then the pigs at the top of the pyramid keep our renewal money. Sure would like the truth to come forward for all to see. If they are doing things the right way I would hate to see the wrong/ unethical way.

How was I alerted to this problem?

Let's just say it was all started by an employee with a conscience.

Imagine sitting at a desk each and every day answering the telephone for a large insurance company's Customer Service Department. You answer questions about beneficiaries, policy changes, account values, death claims, methods of payment and the seemingly dozens of other things people have questions about.

This all changes one day when you receive a call from a 70 year-old woman. This loyal policyowner cannot understand why your company will not pay her husband's death claim. You can tell she knows very little about life insurance and is having an extremely difficult time speaking with you about it. Married for over 50 years, she weathered union lay-offs, strikes, war, the death of one of her children, economic troubles, and a hip replacement. She is trying desperately to hold back the flood of tears and you can sense the pain in her voice. All she has left is his life insurance policy and she wants so much to give him the burial he deserves.

Confused by your company's initial response to completely deny the claim, she's telephoned her local union representative and found that his policy was not taken out through them at all. "Wait a minute" she cries, "the agent told us he worked for my husband's union". "He said he was some sort of representative or spokesman." However, the union representative knows nothing about this and informs her that this insurance company is in no way affiliated with their organization.

You cautiously look around the edge of your cubicle expecting someone to yell, Surprise! This can't be a real call; maybe some of the others in your department are playing a cruel trick on you. These thoughts are quickly broken by the sound of her voice in your earpiece.

She explains that her husband once had a policy he took out in 1966 with another company. They faithfully made payments on this until receiving a yellow card in the mail informing them of a "free" life insurance policy being offered through his union. Soon after receiving this card in the mail, they were contacted by a person claiming to be a union representative who was just following up on the free insurance offer. All he needed was a signature to put the new plan in force. Trusting that the union would never knowingly allow anyone to harm them, they invited this agent into their home.

When the agent arrived several days later, he seemed like such a wonderful man. Dressed in a nice suit, he greeted them warmly and complimented their beautiful home. Digging into his pocket, he produced some sort of identification card, which he claimed, would confirm his affiliation with their union. This card, however, was not really important to them. If this nice young man said he was from their union, then he was, and there were no questions asked. After all, they had been loyal members for more than 40 years and anyone from that organization was like family.

At their kitchen table, the agent brought some papers out of his briefcase. These were the applications for the new "free" policies and in order to get them started all they needed to do was sign them. As they put their glasses on and examined the documents, the agent said, "you know, for just a few dollars a week, you can get a much better policy which is also offered through the union. These new policies are know as Burial Plans and will provide your family with the money needed for your final expenses."

The husband mentioned that he already had a life insurance policy he took out nearly 30 years ago and didn't think he needed any more. "I can appreciate that," the agent said, "but that policy's only worth $1500.00. Your wife will need much more than that to take care of you." But these policies are expensive and we're on a fixed-income," stammers the old man. "I just don't know if we can afford them." Overcoming each objection, the sharp-dressed agent is "slick" and speaks very quickly. Soon the unsuspecting seniors are completing applications for two $50,000 policies.

In just a few weeks, the new policies arrive in the mail. Enclosed is a letter from the agent, thanking them for their business. Not suspecting anything to be wrong, the wife files the policies away in a drawer and forgets about them. Because the premium payments for these new policies are paid automatically through their checking account every month, they are essentially, "out of sight - out of mind".

You are really surprised at how well this woman remembers the chain of events leading to the purchase of the policies. "When my husband passed away a few weeks ago, his cause of death was listed as a Coronary Occlusion," she says. "He hadn't really had any trouble prior to this and I just don't know what I'm going to do now. Your company told me they wouldn't pay me any money because my husband didn't die of an accident. I had no idea these policies only covered us if we died on accident - the agent never told us that."

"He had a 1966 policy but, we just couldn't afford all 3 policies and had to cancel the old one." Desperate for help she cries, "I've tried many times to call our agent and he will not return my calls, why won't he at least talk to me? The agent told us these policies were through our union, why doesn't the union know anything about it? Sometimes we had to do without other things so we could pay for these policies, where did all our money go? Whom can I call, what can I do?"

After gathering yourself, you promise the policyowner that you'll speak with your immediate supervisor about her problem and get right back to her. "Please help me" is the last thing you hear before hanging up the phone.

After giving your supervisor all the information you can remember, he promises to "look into it" and instructs you to return to your desk. After asking this man for something positive to report back to the woman, you're instructed not to call her and to allow the company to take care of it. Feeling like you just abandoned a friend, the rest of your day does not go well all. You just can't get that woman's voice out of your mind. After work, you sit alone at home wondering what happened. And as you lie in bed that night, the pleas for help echo in your mind. Sleep does not come easy.

The next day you query your supervisor on the status of that case. "I have no idea" he says, "I told you to let the company take care of it. Besides, it's not your problem, just answer the telephone and do your job." These words seem almost threatening and you need your job so you do as you are told. Over the next few months, you pay much closer attention to those calling you and your associates. It seems as though more and more calls from desperate policyowners are coming in all the time.

One day as you and several of your co-workers are having lunch, someone mentions a horrible telephone call they received from a policyowner that morning. For some reason, this story sounds vaguely familiar and piques you're interest. Although it wasn't from the same person, It involved the same agent and had to do with an accidental death policy not being properly sold. When you bring this up to the others, they tell you they get phone calls about this particular agent all the time. Because he sells so much insurance / so many policies, he is never held accountable for his actions. Actually, it's not just one agent. There are many different agents who do the very same thing. You think to yourself, it must be nice to make that much money. It must be just like getting away with bank robbery.

As if programmed in your mind, the questions spring forth. Why doesn't someone do something? Can't someone help all the people who've been cheated? How can these agents look in the mirror every morning?

As you drive home that afternoon, you have an idea. You'll get on your computer and search the Internet for someone who handles this sort of thing. There has to be consumer advocates out there whom these people can turn to. That evening as you sit in your living room, you log onto the Internet, type in L-I-F-E I-N-S-U-R-A-N-C-E- F-R-A-U-D and "Bingo!" there I am.

I've been told this is a great story, but is it really just a story?

Could this very thing have already happened to hundreds-of-thousands of loyal labor union members across our nation?

I have reason to believe it has.

Are there people out there who do not yet know this has happened to them?

I have reason to believe there are.

When do people usually find out that their life insurance agent and / or the company has been less than honest?

Right after the insured passes away and their family is desperate for help.

Is this the type of thing someone should take a chance on?

Absolutely not! Why would someone want to pay into a policy for most of their life and end up with nothing in the end?

Has this type of thing happened before with other companies?

Yes, Metropolitan Life, Prudential, New York Life, John Hancock, Allstate, and numerous other companies have paid $Billions in restitution and fines.

Are all this company's life insurance policies bad?

No, of course not. However, in the past 13 years, I've not found many that are more expensive.

The above scenario doesn't really apply to me. Are there any other types of potential fraud you suspect these agents have committed?

Yes, the most common being Policy Misrepresentation.

For example, a hard-working union member is promised a policy worth $100,000 and neither the premiums nor the death benefit are ever supposed to change.

However, upon closer examination, the policy actually consists of three parts or sub-policies. The first of which is usually what agents usually call a "Burial Plan." For our purposes, we'll say this part is worth $10,000.

The second part could be a Renewable and Convertable 10-Year Level Term policy. This policy will actually last only 10 years before the policy will need to be renewed and the premium increased. After another 10 years has passed, the policy will again require renewal and a premium increase.

According to the policy contract, insured must die prior to the policy anniversary nearest his/her age 65 in order for this portion of the policy to pay-off.

Again, for our purposes, the value of this 10-year policy will be only $10,000.

The third and final portion of this "$100,000" policy is an $80,000 Accidental Death Benefit. According to the terms of this policy, the insured must die of an "approved" accident prior to his/her age 70 in order for this policy to benefit anyone.

So, will the policy really remain unchanged AND provide a $100,000 death benefit?

Yes, as long as the insured dies of an "approved" accident within 10 years.

I've also investigated a large number of cases where after just a few years, the premium paid is larger than the death benefit.

I'm not sure I understand what you mean. Will you explain this one to me?

Sure. Let's say a 67 year-old man purchases a life insurance policy that will never be worth more than $1,800 to his/her beneficiaries.
And for this policy he/she pays $323.00 each and every year. Do the math. $323.00 X 10 = $3,230.00.

Why would someone pay $3,230 for an $1,800 policy?

Because they were probably told their premiums would stop when the amount paid reaches the death benefit OR that the policy's value will somehow increase over time.

Remember, that $3,230.00 figure applies if he lives only 10 years. What happens if he lives 20 years?

Are there any other types of potential fraud you've seen?

To list them all would be impossible. Almost every time I begin investigating another agent and/or agency, I find the same old story with a slightly different twist.

The different ways in which life insurance can be sold (or mis-sold) depends solely on an agent's imagination.

I believe the most common "scam" I've found is when agents represent the TRGR10YM "Senior 10" policy as a permanent policy or burial plan. I personally believe a large percentage of agents are trained this way and feel pretty positive that I will acquire evidence of this in the near future.

This policy is nothing more than a Graded Benefit 10-Year Term product. Let's say the policy is represented to have a $3000 death benefit. What is not usually disclosed is that during the first year of the policy, that benefit is only $750.00. In the second year, this is increased to $1,500. The third year will see this amount increased to $2,250.00 and the 4th year (and every year thereafter) will receive the full $3000.00 - for only 6 additional years! Remember, this is only a 10-Year term policy and the chances of its benefit being out-lived are remarkably good.

Mark, I've telephoned my local American Income Life agent and he knows of you.

It seems the worst ones always do. I'm one of the best-known Life Insurance Fraud Investigators/ Consultants in the United States.
It comes as no surprise to me that your agent knows who I am. In fact, I've been in contact with the company's legal department for more than a year now. They also know me.

He told me there's nothing to worry about, that his is a great company and you are nothing more than a liar, cheat, crook, scoundrel, fraud, evildoer, or any one of a hundred different adjectives.

What do you expect them to do? Admit to it? If what I allege is true (and over the past 10 years I've had a 100% success ratio) do you honestly believe they'll step up and confess? I've investigated agents who make in excess of $400,000 per year; do you think they'll just give it all back? There are still people who'll swear that Enron did nothing wrong, O.J. Simpson is innocent, and there never were any weapons of mass destruction in Iraq. There were some people at MetLife who also claimed they did nothing wrong - right before they paid almost $2 Billion in one of the largest law suits in history.

The information I've shared with you is not "The World According To Mark Colbert," it can be found right on your policy in black and white.
Get your policy out, read it, understand it. And please understand that it may be in your best interest to find someone other than your original agent to help you do this.

I telephoned my local American Income Life office and spoke directly with "the boss." He/she called themself a GA (General Agent), MGA (Managing General Agent) or SGA (State General Agent). This person told me that this company has been doing business with hundreds of different labor unions for many years and has never had any problems.

Maybe they haven't - until now. Prudential didn't think they had any problems either. Even after nearly $2 Billion in fines and restitution, they'll still try to convince people they did nothing wrong.

The bad part of this whole ordeal was when you had to realize there were people who actually fell for it.

They told me all about how their Valuation and Commutation Interest Rates are set by the Commissioners Reserve Method and are therefore very close to those used by the rest of the industry. We also have a choice of not two, but three Guaranteed Value Options. And we will always have a choice of taking either Paid-Up or Extended Insurance.

And if you understood all that, you would laugh and know that when it comes to the way in which your policy was sold, all that technical lingo means absolutely nothing.

At a seminar I held last year, a bunch of AIL "executives" literally ambushed policy owners as they arrived at the hotel. In the usually forced conversations that ensued, big words and technical jargon was tossed out like dimes at a carnival's coin toss booth. I was greatly disappointed that several people fell for it and turned around without hearing, as Paul Harvey would call it, "The rest of the Story."