angel s
Clarksville,#2UPDATE Employee
Sat, October 17, 2009
Firstly this is a WHOLE life insurance policy, not a savings account. We are licensed by the state Department of Insurance in North Carolina to do business with the military and the civilian market. You are applying for life insurance coverage with an accumulation fund attached which builds cash value. The first year the majority of your money would go towards the life insurance policy and the minority would go towards the accumulation fund. The second year the minority of your money would go towards the life insurance and the majority of your money would have gone into the accumulation fund. This is not a short term, get rich quick scheme. Clients are advised to keep the policy for a minimum of 10 years, otherwise yes you WILL lose money. You will have signed a statement of understanding where you will have initialed on four different places and signed and dated at the bottom that you understand how your money will be split the first year and every year thereafter. The Home Office can provide you with a copy of this if you so wish. They DO NOT accept applications without this documentation. I do not know your age at time of insurance, but I can assure you that you would not have been given two figures that differ so wildly.
The reason that there is life insurance on this policy is to keep the policy tax deferred and keep the policy tax free upon death (the government does not tax death benefits). If something had happened to you your beneficiary would have recieved the face value of the policy plus whatever is in the accumulation fund tax free. I am sorry that you feel you had a bad experience with our company. However, this company is a solid reputable company. It is also an original participant of the SGLI still is today. If you don't understand what you are buying, the please don't buy. Ask all the questions that you can, do your research, call the Home Office. If you kept the plan it would have done exactly what the company said it would.