CUNA Yanks 92-Year-Old’s LI Policy

92-year-old Helen Moosman saved $2,000 at US FederalCredit Union to pay for her funeral expenses. Her late husband told her never to touch the money because of a CUNAMutual Group life insurance policy that would pay double the amount upon herdeath.

Moosman recently received a phone call informing her thatunder the terms of the policy, which allows CUNA to cancel at any time, herpolicy would no longer be honored after December 31.  Nearly 1,500 of the US Federal Credit Union’smembers will be affected by this change.

CUNA does offer a different insurance product with thesame coverage, but Moosman would now have to pay a yearly $550 premium toreceive the $2,000 payout.  On thedecision to cancel the existing policy, Moosman’s daughter said, “I understandif they are not going to offer it anymore, but they can’t take that away andsay it’s not feasible.”

See Alejandra Matos, Whistleblower: 92-Year-Old’s InsurancePolicy Yanked After 40 Years of Savings, Star Tribune, Oct. 8, 2013.