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Abhorrent premium increase on GULP life insurance

 I have a Group Universal Life policy through
Olin Corp. and administered by Mercer Health Benefits Administration
LLC and underwritten by METLIFE(the one with the Snoopy logo) My premium has just took a 56.75% increase that defies all common
logic. I have significantly paid premiums over the year that drastically
reduced METLIFE's liability on this policy. If anything, logic would say
a reduction would be in order. We are facing not only inflation pressure
but now a cloud of recession is looming over head. The biggest thing
that Mercer is able to have accounts like mine is because of our
inherent love to pass on a viable resource to for our loved ones, once
we pass. Please help me find an outlet to get my message of reversing
this premium increase reversed. I feel like Mercer is trying to force
us to abandon our policy to avoid paying on a promised benefit that we
have paid for many years. I have wrote to Mercer with no response and the South Carolina Insurance Commission also no response yet. Any recourse or do I just suck it up. I don't want to give up policy after so many years(over 40 +) but with this new monthly increase, being on a fixed income is hard, very hard. What to do? Thanks. Bill
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Honored Social Butterfly

Is this GULP policy through your employer?  Olin Corp?

Was your cash value on the policy used to pay part of the premiums?

Increases in premiums for GULP policies can also be triggered by something the employer does or some life event of the policyholder - like retiring from the company, wanting more on the insurance side or having to get a medical exam for underwriting if wanting more insurance or other changes.

 

Investopedia:  What Is a Group Universal Life Policy?

 

 

It's Always Something . . . . Roseanna Roseannadanna
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Answers to your questions, 1. yes, 2. yes, 3. no. There was no instigation of employer triggered wanting changes from Mercer, they are quiet but merely offering GULP insurance to employees. Mercer, at the time was Marsh and presented the GULP and thereafter increased premiums across the board on all age groups several times. I have been retired for 16 1/2 years from a great company that has followed great moral standards for its employee's since its inception back in the 1800's. With still paying premiums after retirement and during active employment periods, the risks for payout is nil and pure profit for Mercer. Their insurance concept has failed a moral ethic.

 

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MetLife has a footnote on their website that says:

Metlife - Group Universal Life Insurance | MetLife

  • This policy is permanent, portable, and owned by you, regardless of where you work.1

1 To the maturity age specified in the certificate. In some program designs, if your plan sponsor replaces MetLife GUL with another group life insurance plan or otherwise terminates the MetLife group contract, employees’ coverage may also be terminated, even after separation from employment or retirement. Rates may increase if you leave your employer for reasons other than retirement or are no longer eligible under the group and choose to continue your coverage. If you have ported or otherwise continued your coverage after retirement or separation from employment and the plan sponsor later terminates the group policy, cost of insurance rates may increase as a result of such termination.

 

This should be disclosed in your policy.

 

 

It's Always Something . . . . Roseanna Roseannadanna
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Sorry to hear about the increase. We are experiencing something similar with another carrier. I am looking for answers and I'll let you know if I find anything. When is the increase due? 

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The increase was applicable to last month(May). An interesting thing I found out when chasing down this premium increase was that although MetLife was the underwriter, they have no control on rates or policy decision. That belongs to Mercer, the administrator where you don't even see the word insurance in their name. Maybe they should include Ghost in their name because once the premiums are paid, you can't get them to respond. Another thing is as these companies get bigger and stronger with our money support, they often change their names. Mercer, changed from Marsh U. S. Consumer, a service of Seabury and Smith, Inc. and the underwriter MetLife often changed their name and is completely hidden by corporate design. In fact MetLife sold their insurance business years ago and so diversified would be hard to track. Thanks for your interest and good luck. Consumers need it. Bill

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I just wanted you to know that I have not found any answers yet. I will continue to look into it because we need to decide in July. What does your insurance agent say? Our agent said there's an increase across the board. 

 

There is always the option of selling the policy if you can not afford the premium.

 

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