This is based on a true story about what happened when my client had a problem paying an $89,000 premium for a hybrid long-term care policy.
Persuading the client's credit union to transfer the money to the insurance carrier turned into a bureaucratic nightmare. The situation shows what I had to do for my client to solve the problem.
Names and details have been changed to protect everyone's privacy.
Background
Transferring money from a financial institution to an insurance carrier to fund a hybrid policy usually takes about two weeks.
For the client involved in this situation, the process took more than 80 days.
Three submissions disappeared into what seemed like an institutional black hole.
The client received promises of callbacks that never came.
At one point, the client and I talked to five different bank representatives during one 90-minute call. Each representative passed the buck to the next.
The delay threatened to derail the client's long-term care policy approval.
Our Action Plan
I decided to shift to an unconventional approach. With the client's approval, I sent a carefully worded email to the president and corporate communications department. It included this action plan:
1. Giving the bank a 48-hour deadline.
2. Calling the office of a member of Congress.
3. Filing a complaint with the Better Business Bureau.
4. Calling the media.
Suddenly, within 24 hours, the bank discovered it could process the transfer. Three days later, the funds arrived at the insurance carrier.
Lessons Learned
This experience wasn't just about moving money: It was about standing up for my client when systems failed.
In the LTCI world, timing can mean the difference between security and vulnerability for our clients.
The process I used to help this client illustrated important lessons for dealing with financial institution delays.
1. Document everything. Your paper trail is your armor.
2. When conventional channels fail, be prepared to escalate.
3. Target your message to those who guard the institution's reputation.
4. Create a sense of urgency by setting specific, actionable deadlines.
5. Demonstrate the consequences of continued inaction.
Margie Barrie, an agent with ACSIA Partners, has been writing the LTCI Insider column since 2000. She is the author of two books and a frequent conference speaker.
Credit: Sikov/Adobe Stock
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