Friday, October 11, 2013
92-year-old Helen Moosman saved $2,000 at US Federal Credit Union to pay for her funeral expenses. Her late husband told her never to touch the money because of a CUNA Mutual Group life insurance policy that would pay double the amount upon her death.
Moosman recently received a phone call informing her that under the terms of the policy, which allows CUNA to cancel at any time, her policy would no longer be honored after December 31. Nearly 1,500 of the US Federal Credit Union’s members will be affected by this change.
CUNA does offer a different insurance product with the same coverage, but Moosman would now have to pay a yearly $550 premium to receive the $2,000 payout. On the decision to cancel the existing policy, Moosman’s daughter said, “I understand if they are not going to offer it anymore, but they can’t take that away and say it’s not feasible.”
See Alejandra Matos, Whistleblower: 92-Year-Old’s Insurance Policy Yanked After 40 Years of Savings, Star Tribune, Oct. 8, 2013.