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Stephen's complaint:
December 27, 2013

Insurance Company: Protective Life
Coverage Type: Health Insurance

  • Underwriting - Premium Too High
  • General - I feel abused by this company

This company has repeatedly increased my premium since I purchased a supplemental policy for cancer insurance many years ago. It began around $27 a month when I first enrolled in it. In a number of years it skyrocketed to around $80 a month (approx 15 years ago) and I called and spoke with a rep to complain about the price increase going so high. She recommended that I still keep the policy as it would no longer be offered as I currently had it because Protective Life Corporation (PLC) would no longer write that particular policy because it was too good for the consumer and too expensive for PLC to pay out on claims, so I took her advise (because you never know what the future holds) and I kept the policy in force.
Almost every year since then, it continues to increase. When it went to over $300 a month, I contacted PLC again to question the integrity of the company for continuing to increase my premium payments and price gouging tactics. She told me a reason that because of the President (Obama) and his healthcare reform motives, that PLC NOW considers my policy "a Cadillac policy" and therefore the price can continue to increase exponentially over time. (Am I supposed to keep it when it reaches $1,000.00 a month also? When does it stop?!)
I was very disappointed to hear this nonsense and it further increased my belief that this provider was ONLY out to FORCE hard working people like me to have to cancel my policy due to its high costs. Now they do offer a VERY subordinate (IN my opinion) four option plan. The fourth option is to keep current policy and pay the outrageous ANNUAL price increases (NOW increasing to $537.62 PER MONTH for 2014) and three other options 1, 2, and 3 that range in price from around $80, $152, and $173 respectively. Each with FAR less coverage than the original policy and not worth the money (in my opinion) they are asking dollar for coverage as so many features have been excluded compared to the original policy. This seems so criminal to me, in my opinion, that they can literally FORCE me out of this policy that I, in good faith, took out nearly 20 years ago when they newly offered this policy.
This was supposed to a "Supplemental" policy to help offset personal expenses in the event that something tragic happens to ones health. It costs as much or more than family coverage for regular health insurance now!
My advice, be wary of supplemental insurance policies that insurance companies sell you based on fear of "what if".
When I bought the policy originally, it made great sense AND was affordable. They didn't use the US President as an excuse or reason to increase their monthly premiums.
Insurance companies make millions of dollars investing the money that we pay in premiums. That's business. That's how they can afford to pay claims and stay in business. That is fair for the protection you get in case of unfortunate circumstances and these rates are calculated normally on large number group averages to determine premiums. I understand the concept of insurance and the necessity for it. What I have a difficult time understanding is the extreme monthly premium increases that I have experienced, AND faithfully paid for so many years, that are NOW FORCING me, as well as my family, out because it will cause excessive financial HARDSHIP to keep this policy as it continues to increase EVERY year ASTRONOMICALLY.
Something needs to be done about such unfair and unreasonable practices.
I expect increases to happen as time goes on, however, I never would have imagined a nearly 2000% increase in monthly costs.
I believe I would have done better investing my monthly premiums in the stock market and have more to show for it.
I guess PLC is going to finally win the battle here. I can not justify paying so much for this even as badly as I want to keep this policy because it had so much merit when I first enrolled.
Once again, the big insurance companies beat down the little guy and win.
Thank you for reading this post/complaint. It is a shame that we have to be victims of such practices. Whether good or bad.......It's just business in their eyes.
Thank you.

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