How can I pay my Globe Life Insurance Premiums online?

Life insurance company taking premiums out of policy?

• Hello a friend of mine(Old timer) had his bank account hacked by some guy in Mexico about 2006. His life insurance premiums were coming out of the bank account every month, after he got hacked the account numbers were changed and the premiums weren't coming out anymore. The life insurance company decided to take the life insurance premiums out of the policy as a loan with an additional 8% interest. Somehow the life insurance loan has snowballed into a debt over $14,000. The policy itself is only $10,000 and there's no way he will ever be able to pay $14,000 off or even a portion of it. He thought the money was coming out monthly and wasn't notified otherwise until this year -> 2011. Any advice would be greatly appreciated.

• Answer:

  When a life insurance policy begins to be paid by automatic policy loans, a notification is sent to the policyowner. Either your friend isn't the actual owner of the policy or he just didn't read or notice the notification. Also, a policy loan is completely collateralized by the cash value of the policy. For that reason a policy loan can never exceed a certain percentage of the cash value (usually 90%). When the cash value less the policy loan is not sufficient to pay the premium, the policy will terminate. So unless there's more to the story, the cash value must be larger than $14,000. Perhaps the policy is closer to $20,000 (you said old timer but not how old) and the most recent notification was telling him that his remaining cash value will soon be unable to make premium payments. In the extremely remote chance that the insurer made an incomprehensible mistake by allowing a policy loan to exceed the policy's cash value I agree with the previous answer to walk away. Policy loans are non-recourse meaning you can walk from the policy and pay nothing. In that case you (or your "friend") would also lose the policy.