East Valley woman claims life insurance was erroneously canceled

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By Jim Carr By Jim Carr

Lucina Stanley says she's had a great life and at 81 she says family has always been important.

“I have a lot of family, I have three children and grandchildren so I feel like my life's been worthwhile,” Stanley said.

So to help her family out, Stanley purchased life insurance years ago from Globe Life and Accident Insurance. The policy, she said, would be helpful when she passes away.
“I was happy to have it because I know that I'd have money if I died that my children would have money to pay for any bills I had or for my funeral costs,” she explained.
However, Stanley recently got a notice in the mail saying her insurance policy had expired last year when she turned 80. It didn't seem quite right because Stanley said she's been paying her $32 monthly premiums for the past year. If it was expired, why was the company taking her money, causing her to overpay?
“My birthday was in March of 2010 why didn't they tell me then? Why did they have me pay all the way through November?” she asked 3 On Your Side.
3 On Your Side thought there might have been a mistake and contacted Globe Life regarding Stanley's situation. Turns out, Stanley misunderstood her policy. She didn't know it, but she had signed up for Term Insurance, which means it is only active for a certain term.
In Stanley's case, her term expired in the November following her 80th birthday. So, she never really overpaid her premiums like she thought and her policy expired when it was supposed to. Stanley said it's been a learning process and wishes she would have asked more questions when she bought the policy.
"They told me that I should have known that it would run out at 80 and I didn't know that," she said.
It’s very important when you decide to purchase life insurance that you know exactly what you’re getting. If it’s a term policy you have to know when that “term” expires. There’s also something called “whole life” insurance which doesn’t expire.