Complaint Review: Ozark National Life Insurance - N.I.S. Financial Services - Kansas City Missouri

 Just to be clear Ozark does not charge for investing in Pioneer fund, the 5 3/4 % sales charge is what Pioneer charges for purchases under $50,000 no matter who you buy from. I'm a current 30yr agent/Rep for Ozark National Life & NIS Financial Services. This company & the BALANCED Program are excellent.

I too have bee involved with Ozark and I can say that I think the program is great!:) I have gone to the dinners and I fully understand the balanced program and I have yet to find anything that compares to it. 

Where else are you going to find a long term investment program that helps you save for your future the way the balanced program does. First the program is designed to help you reach your goals no matter what life may throw at you, and lets face it everyone claims to "not need the life insurance" so I am assuming they have found the "perfect life pill" and have a lifetime supply of it. We all hope that we will work for X amount of years then retire and life will be great how ever that is not always the case.

This program provides a benefit to us personally, and to our family's. If we work X amount of years with no issues and retire Great, we have saved a substantiated amount of money through this program, however if I work X amount of years and I am injured on the job, wow how do I continue to save for my retirement if I am at home injured, not making any money I am sure my employer wont step in to continue to invest in MY future, well with the program they step in and make the payment for you until you are able to work again or for the life of the investment.

Lets say I'm on my way to work and someone cuts me off and my car is totaled and so is my life, well the program steps in gives your family a Life insurance payout but they don't stop there they also give them the amount you would have invested for your retirement had you actually lived and paid it only now your family can invest it and reach the retirement goal a whole lot faster.

So if I mess everything up and actually live then I have made a wise choice in saving my money for my future The insurance is put into the program to safe guard you no matter what life throws at you.

Yes you could go directly through Pioneer fund and invest your self, and even carry more term insurance, but with your fingers crossed that Life will work out just the way you planed no accidents, Perfectly how you imagined, It is a great fantasy but reality is Life is not perfect.

I am quite sure If you are making an investment with any fund (By the way they all have a fee, and usually cost more than a minimum of $50 to start) and you become disabled they certainly are not going to offer to continue to invest for you.

Understanding is the best thing in the world read, investigate for your self ask questions, Don't write a check or sign on the dotted line unless you know ALL the facts. Ozark is a great and legitimate company that offers a product no one else can touch!   

My sister asked me to review her finances. She was confused with what she and her husband had and wanted me to help them figure it out. I found this Ozark policy. In fact, I found three I think, but she was not given all the paper work.  Their experience was strikingly similar to that of this gentleman from Newton, Kansas.

In reading the rebuttals, I was at first offended by Bernis comment that, You would have to be very incompitent [sic] to not know that you are buying life insurance along with the program.

Then I realized that perhaps my sister wasn't competent when it comes to purchasing financial instruments, which made it all the more offensive to think that the sales representative was pushing this product so hard without her full understanding of what she was purchasing. 

What would you expect from a salesperson? When I purchased a diamond for my wife's engagement ring, I trusted the advice of a salesperson. I have no idea what I really purchased and if I paid too much for it. When getting financial advice, or diamond advice, it is always best to get it from somebody who is not selling you a product.

In my opinion, the product that my sister and her husband purchased was exactly as it was represented in the documents. The documentation was so clearly written that I thought to myself that it was a CYA for the lawyers to pull out in case anybody challenged them in the future. I had to chuckle at the response the Newton gentleman received from the Ozark lawyers.

I can't speak to the salesperson's tactics, except to say that my sister claims that they were confused.  The lesson learned is never sign anything unless you fully understand it.  She claims also that they kept coming back for more money, saying that they werent contributing enough to the fund. She thought that the additional money would go entirely to the Pioneer fund, but it appears they opened duplicate policies.  That also seems clear in the documentation.

In my opinion, the product that my sister purchased was not the right product for them.  My sister insists that they really didn't want the insurance. In fact, her husband was already covered by a substantially larger policy. I would agree that their financial situation would not require her to have insurance for the rest of her husband's life. Even if she did need the insurance, it seems quite expensive compared to other options. I'm not a believer in whole life policies unless one is a high net worth individual using it as a mechanism to transfer wealth to avoid the inheritance tax. 

I also found that the investment part of the program was fine, at least for the money that eventually made it there. Pioneer is a good fund with a reasonable fee. The problem is that Ozark appears to be taking 5.75% off the top before sending the money to Pioneer.  If one wants to have a mutual fund through Pioneer, why not send the money directly to them and avoid the middleman?

Now my sister is trying to get a hold of her policies to understand exactly what she purchased.  The best I can figure, theyre spending $160 a month for three life insurance policies each with an initial face value of about $10k and a decreasing benefit and a $74.24 monthly contribution to the Pioneer fund.  She should be able to get a $50,000 10-year term life insurance for $25 a month to cover them until retirement, at which point there is no income to protect and no need for insurance. If they continue to commit to $160 per month, they could send $135 directly to Pioneer, which should result in the fund being 43% larger by time they retire.
 
In summary, it would appear that Ozark may have aggressive sales people, but the documentation clearly represents what they are selling. I find it odd that my sister did not get copies of the policies, but that may be an oversight. Whether this is the right product for a particular person is subjective.  If somebody wants to purchase expensive insurance and pay somebody 5.75% to transfer their money to a mutual fund go for it.

I have been a customer of Ozark National since I was 16.  I set up my balanced program then.  I was well aware of what I was getting into.  I listened at the dinner seminar that was put on in my home town.  The agent then met with myself and one of my parents.  I educated myself by asking questions, reading the literature that was given me, and then asking more questions.  I was raised knowing that my money is precious and I don't sign on the dotted line without reading first.  I was smart about it and started a humble program knowing that I could always put more money into the investment side anytime I wanted.  Most of the first year's money does go toward the insurance part of the program.  That is well explained in the dinner seminars and when the agents meet with you.  It is stated in the documents that they have you sign.  Also if you die at any time the fully complete your investment.  If all you wanted was an investment then you should have been clear and asked questions before you signed.  I do know of a few people that have died while in their first year of their investments and everything was paid in full by the company.  As consumers, we can not blame the companies for our lack of common since.  If you are not comfortable with a situation, then don't sign.

I am sorry to hear about Doug's experience.

I have been an agent for Ozark for 5 years.

My parents have been clients of this company for many years. They have accumulated a very nice mutual fund, and a substantial amount of cash value through the life Insurance side. This life Insurance policy came as a life saver to my parents when my dad was laid off all year 2009. The cash value was there when they needed to have money to cover their taxes which came due before they got their tax returns. Thank God they had the life insurance side because they did not have to dip into the mutual fund for money. I know about the first year and how it goes to the Life Insurance side. The reason for this is, if my dad had started his program, and  become disabled the next day Ozark would have stepped in and saved his retirement for him for as long as he was disabled. If it were permanent, his retirement would have been saved for my dad for the rest of his life up to age 100. or if my dad would have started the program and died the next day, Ozark would have been locked in to pay out a substantial sum of money. The money going to the Life sidethe first year, helps the company maintain it's viability.

I understand that in Doug's situation he may not have been aware that he had a choice to simply invest in the mutual fund. Or even buy an outright Life Insurance Policy. As an agent for Ozark I know how important it is to help the client understand the options they have, guiding them towards their needs, and not to rushing through things. Though Ozark is a VERY GOOD company, us, as agents need to take responsibility to make sure we do the right thing for our clients. As agents, if we do a sloppy job, we make our company look bad. We as agents are the face of Ozark, and we need to provide the best face-to-face customer service for our clients, in order to not misrepresent our company.

I live in the upper midwest, I do not know Bob personally, but I have probably seen him at our meetings. I just stumbled upon your story, looking up a web-based company I had some concerns with. Wish you the best of luck Doug, wish your experience would have been more positive.

suggest to contact other representatives, my in laws have been policy holders/members since the late 70's and everything described in their 30 minute dinner meetings has rang true for them, we have been members for a few years,

going in to this venture, we realized this is not a get rich quicks scheme OR that it would be money available to us right now it is for retirement with the added benifit of having life insurance and disabilirty etc.

my in laws have "borrowed" money out of their account and never came close to touching what they started with.  markets go up and down we expect that, you will not make money short term, this is a long term investment,

I trust Ozark Life/Pioneer Fund and the Reps we have in this area, most have been in this town or in the surronding towns of Mid Missouri their entire lives and we've known all of them for years! I would doubt the complaintant well before the company!

I am a happy client of Ozark national Life,

It's not a get rich quick scheme, it's an investment plan and it seems like there was some misunderstanding as to how it works.

It's not like winning the lottery, it takes time to save. Just be careful, some companies are dishonest, I've heard horror stories from companies like Prime America etc.

I have worked for the company for 10 years before retiring and I am also an owner of the Balanced Program since 1988. I am completely satisfied with the product. When I retired I could have quit the program but I feel that they still have best product on the insurance market. As a representative I always made sure that my client understood what they were purchasing. I did not force the Balanced Program on anyone. I am sorry that the the complaintant was dissatisfied and it was not explained properly. I never left my new client with questions. The agent in question should have stayed to insure that the client understood what he was buying. The most important person on an appointment is the one you are accross the table from. He could have called the next appointment to let them know he would be late. Please don't blame the product or company for a representative's actions.

I have worked for the company for 10 years before retiring and I am also an owner of the Balanced Program since 1988. I am completely satisfied with the product. When I retired I could have quit the program but I feel that they still have best product on the insurance market. As a representative I always made sure that my client understood what they were purchasing. I did not force the Balanced Program on anyone. I am sorry that the the complaintant was dissatisfied and it was not explained properly. I never left my new client with questions. The agent in question should have stayed to insure that the client understood what he was buying. The most important person on an appointment is the one you are accross the table from. He could have called the next appointment to let them know he would be late. Please don't blame the product or company for a representative's actions.

I have worked for the company for 10 years before retiring and I am also an owner of the Balanced Program since 1988. I am completely satisfied with the product. When I retired I could have quit the program but I feel that they still have best product on the insurance market. As a representative I always made sure that my client understood what they were purchasing. I did not force the Balanced Program on anyone. I am sorry that the the complaintant was dissatisfied and it was not explained properly. I never left my new client with questions. The agent in question should have stayed to insure that the client understood what he was buying. The most important person on an appointment is the one you are accross the table from. He could have called the next appointment to let them know he would be late. Please don't blame the product or company for a representative's actions.

I have worked for the company for 10 years before retiring and I am also an owner of the Balanced Program since 1988. I am completely satisfied with the product. When I retired I could have quit the program but I feel that they still have best product on the insurance market. As a representative I always made sure that my client understood what they were purchasing. I did not force the Balanced Program on anyone. I am sorry that the the complaintant was dissatisfied and it was not explained properly. I never left my new client with questions. The agent in question should have stayed to insure that the client understood what he was buying. The most important person on an appointment is the one you are accross the table from. He could have called the next appointment to let them know he would be late. Please don't blame the product or company for a representative's actions.

I have been a client of Ozark for quite a few years, as have also my parents, and quite a few people I know. You would have to be very incompitent to not know that you are buying life insurance along with the program. I had to sign not just 1, but several forms stating that I knew that insurance and mutual funds went hand and hand in the program, and that I was getting involved in both. I also was very well informed that this was a long term program, and that if I quit during the first 12 months, my life insurance premiums are not refundable, just like any insurance. I was well informed that my statements would not reflect my premiums till the 13th month, then the program split the premiums 50/50 half went into my mutual fund, and half paid for my disability/death benifits, and also built up guaranteed money in a seperate account. This is a good company. I know people personally who have had the program, and have become permanantly disabled, and OZARK IS FUNDING THEIR RETIREMENT FOR THEM. Ozark/NIS is a very reputable company. Been around a long time.

Well, first off. You are NOT alone in this. Although, there have not been a lot of complaints about the company, it is not that there aren't any (It just isn't large enough to hear about). The 'Balanced Program' couldn't begin to be more confusing, but to the uneducated eye it may seem like a heck of a deal. The investment/insurance world is extremely confusing, even to someone who studies it. Looking into the two companies though, the Pioneer fund is actually a pretty decent fund with decent expenses and returns BUT it is VERY decieving when the Ozark rep first buys you a "chicken dinner" then gains your trust only to load you up with a high commission, subpar, decreasing, whole-life policy that is SUPPOSED to be a "multi-purpose" vehicle. If there is any customers questioning this, please review your policy. Look at the first year. You can expect that higher first year premium in the pocket of the rep that sold you it. I agree with the concept of the invest/insure concept, but c'mon guys, this is just another way to scam money from the little guy. There is NO planning at all, often times leaving families SEVERLY underinsured. It puzzles me sometimes to think that the reps actually think that they are helping people. To sum things up. Whole life can be a good product for the right situation, so can term, so can a mutual fund, so can a roth IRA, and many other vehicles, but there should be some investigating done to prevent the deceptiveness of a company that conducts business in such a way.