I seem to have hit a pocket of bad luck turbulence. My latest financial trouble involves American General Life Insurance Company (AIG Life). Over the weekend, AIG sent me a letter cancelling my life insurance policy for non-payment. I don’t think AIG knows what they are doing because I made the annual payment last October. When AIG notified me back in November, I had my bank send them a copy of the check, which was deposited by AIG and cleared on October 17th. In December, AIG investigated the matter and sent me a letter informing me I was correct and that the issue was resolved.
Then last month, AIG sent me another letter telling me they still have not received payment. I assumed it was just an error/automated response since they already told me the problem has been taken care of. Then over the weekend, AIG sent me yet another letter. This time they told me they have terminated my policy (even though I had already paid them $282 last October). My wife called AIG and told them we already sent proof of payment and that AIG sent a letter telling us they did receive the check. The customer service rep told my wife that they have no record that the check ever cleared and that we have to resolve the issue with our bank.
What the heck? AIG cashed the check. It cleared. We sent them proof. AIG acknowledged receipt of payment. Now my life insurance policy has been terminated. Without a refund.
Even if I get my life insurance policy reinstated, I have absolutely no confidence AIG will actually send a check to my family in the event I am killed by a sith or a giant marshmallow man. Keep in mind that AIG was bailed out twice last Fall ($150 billion in taxpayer dollars) and will most likely need another bailout this year. This is the same company that threw a party at a five-star resort two weeks after the first bailout. They don’t know what they are doing. Right now, I would rather get my $282 back than keep my policy with AIG Life.