ComplaintsforAmeritas Life Insurance Corp.

• Initial Complaint

  10/11/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I opened a $50,000 life insurance policy on June 29, 1984 that is set to mature on June 29, 2039. I have been paying my monthly premium of $25 each month since the opening of my account. On June 29, 2023 I received my statement in the mail stating that as of June 28, 2022 I have a policy cash value of $1723.21 plus a death benefit of $50,000. On September 29, 2029 I received a letter in the mail from Ameritas stating that my funds are insufficent for this policy and if I don't pay $647.45 Dec 9, 2023 that my policy will be cancelled. I have received no notification that there was insufficient funds prior. As stated above, I have paid my only time payments of $25 since 1984. I called the facility and they said that the $647.45 will be due potentially every 3 months. My policy number is *********  I am requesting that they honor the original agreement of $25.00 per month and that I am not subject to "increases" as this is unfair to myself whom has honored our agreement since 1984. My expectation is that they honor my policy and don't put their business expenses on me, the consumer. I seems that since I am 69 and close to my potential date of using this policy, they are expecting me to reimburse them for the policy that I paid to ensure my protection for me and my family. I have paid over $11,000 dollar to this facility to maintain my policy without ever being subjected to this "interest" and lack of funds. I am on social security and on a limited budget and it is unfair practices to expect someone to come up with additional funds like this on a regular basis at my age.

  

  Business response

  10/19/2023

  Please find the attached response and supporting documentation.

  Should you have any questions or need anything further please do not hesitate to contact me.

  Respectfully,

  ****** ********

  

  Business response

  10/20/2023

  Dear Sir or Madam:   

   

  Ameritas Life Insurance Corp. (“Ameritas”) (**** * ****** has received the complaint dated October 11, 2023. We have carefully reviewed our records in response to this complaint. The complainant, ******* ****** is the owner and insured of an Ameritas individual universal life insurance policy.   The policy involved in this complaint is an individual universal life insurance policy number ********. Policy ******** was originally issued by the Union Central Life Insurance Company. Effective July 1, 2014, Union Central merged into parent company, Ameritas Life Insurance Corp. (“Ameritas”). This merger resulted in no changes to the terms, conditions, and provisions of the policy. For convenience, “Ameritas” will be used throughout this letter to refer to the insurer, even when actions were taken before the aforementioned merger.  How the UL Policy Works:  Universal life insurance policies (“UL policies”), like the one owned by *** ******, are very flexible in terms of the amount and timing of premiums to be paid. This flexibility, however, puts more responsibility on the policyholder to pay attention to the policy and make sure that it is being funded adequately. A UL policy creates a cash value account for premiums paid into the policy. Each month the cash value of the policy builds interest at rates that can vary according to the terms of the contract but subject to a guaranteed minimum rate. The guaranteed minimum interest rate for this policy is 4.50% annually.   Of course, a life insurance policy is not a bank account. The cash value of a UL policy is not guaranteed to keep up with the amount of premiums being paid – or even to increase at all – because these are costs associated with providing the life insurance benefit.  Each month a cost of insurance (“COI”) charge is deducted from the cash value of the policy in accordance with the terms of the contract. The guaranteed maximum COI charges per $1,000 of insurance are shown in the table called “Maximum Monthly Cost of Insurance” included in the Policy Schedule. A policyholder can see from the Table (or from the Annual Reports sent each year) that monthly COI charges tend to increase each year as the insured grows older, and thus riskier from a life insurance perspective. These COI increases over time are a typical feature of UL policies and are in accordance with the terms of the Policy Schedule.   When the premium payments plus accumulated interest for a UL policy are greater than the COI deductions and other charges, the cash value of the policy can start to grow. On the other hand, if the premiums plus accumulated interest are less than the monthly COI deductions and other charges, the cash value will decrease. If the net cash value drops below the monthly deductions for the next policy month, the policy enters a “grace period” of 62 days. Once a policy enters a grace period, the owner is  Page 2 of 3  notified, and payment is requested for enough premium to get the policy out of grace. If the payment is not made within the grace period, the policy will lapse and no longer provide a life insurance benefit.   UL policies do not necessarily last forever simply because planned premiums are being paid on time. A policyholder has the freedom to determine what those planned premiums will be, but the policy will lose value and could eventually lapse if the premiums and interest do not keep up with the monthly COI deductions and other charges.  Background of this Policy:  Policy number ******** was issued effective June 29, 1984,  in the state of Kansas in response to an application signed by *** ****** June 21, 1984. That application requested a Universal Life policy on his life with a $50,000.00 specified amount of insurance. It set initial planned premiums at $25.00 monthly. Although *** ****** has generally paid those original premiums as planned, we have found no evidence to suggest that those premiums were ever guaranteed to keep the policy in force forever.   Ameritas sends an Annual Report to the owner each year after the policy anniversary (June 29th, in this case). The Annual Reports summarize important information about the policy, including all of the payments, interest credits, and charges each month during the preceding policy year. They also show the current cash value, death benefit, and planned premiums, and provide some answers to basic questions about the policy. These Annual Reports have consistently described the type of policy as “Universal Life” in bold font at the top of the first page.    Copies of the last 3 Annual Reports for this policy are attached Some of the important information from the last 3 Annual Reports is summarized in the table below:  ----- Policy Number ******** (******* ****** insured) Annual Report Date: Gross Premium: COI Charges:  Interest Credited: Ending Cash Value: 6-29-2021 $300.00 $1,253.26 $136.60 $2,747.30 6-29-2022 $300.00 $1,408.02 $95.93 $1,723.21 6-29-2023 $300.00 $1,588.08 $45.93 $469.06  As you can see from the table above or the Annual Reports, the COI charges have been increasing each year as the insured grows older. However, comparison of the actual COI charges deducted to the guaranteed maximum COI rates shown in the Policy Schedule for the applicable policy year shows that Ameritas has consistently charged less than the maximum COI rate each year. In addition, while there have been generally low interest rates over recent years, the rate credited to this policy never fell below the guaranteed minimum of 4.5% annually. The premium history for the last 3 years is also shown on the annual reports.   While we sympathize with *** ******’s concerns about the increasing costs for this UL policy, we have not found any documentation to suggest that this policy was guaranteed to stay in force forever with the original planned premiums. The policy type and all policy costs are properly disclosed in the policy pages and were further disclosed in the Annual Reports sent to his address each year. As a result, Ameritas has provided his with the benefit of life insurance coverage for over 39 years. Considering this evidence, we see no basis at this time to depart from the terms of the contract.  We hope this information will be helpful in your investigation of this matter. If you have any questions or need anything further, please do not hesitate to contact me.   

   

  Respectfully,  *** ****** ********

• Initial Complaint

  10/11/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I received a Notice of Plan Termination for my 401k. Ameritas letter states that they would transfer the assets to Millennium Trust Company within 30 days from receipt of letter. The letter was dated on July 10, 2023. However, the assets have not been transferred.

  

  Business response

  10/12/2023

  Ameritas did send a letter that stated assets would be moved to Millennium Trust Company.  This money is part of what is considered an abandoned plan.  This means that that employer sponsoring this plan has become non-responsive and we are working to terminate the plan.  While we try to provide dates, sometimes, dates may be pushed out due to various reasons.  However, *** ****** completed a distribution form and submitted on 9/18/2023. Given this, we held up the transfer and worked to complete the distribution.  Since this was an abandoned plan, the third party administrator (TPA) did not sign the form.  Unfortunately, this pushed out the distribution process timeframes. However, the distribution is in process and the money should be transferred within the next few days.

  Customer response

  10/12/2023

  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  
  Sincerely,
  
  **** ******

• Initial Complaint

  05/22/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Okay so I have tried getting my 401k and asked for a wired transfer back on April 25th I have called the company many times also have emailed them had the administrator sign the paper which he told me was submitted and now they are not will to help what so ever they are with holding my funds and not even trying to help the matter at hand I want my money and this isn’t right! Wire transfer is supposed to happen with in days not a month later

  

  Business response

  05/22/2023

  We received the distribution request on 4/25/2023.   The plan sponsor/administrator had not signed the form.  We made multiple calls to try and get the form signed.   As for today 5/22/2023, we received the signed form from the plan sponsor and working to process the distribution.   Ameritas cannot process any distribution without the signature from the plan sponsor.   

  Customer response

  05/23/2023

  
  Complaint: ********
  
  I am rejecting this response because:
  
  Sincerely,
  
  Katrina *******

  this was all sent in on the 25th I was told it was forwarded to the person a week later I found out it wasn’t so I got ahold of Jordan and he submitted it to them it’s on them something needs to be done 

  

  Business response

  05/23/2023

  This distribution request was signed by the plan sponsor yesterday (5/22/2023) and is being processed.  Ameritas has no control over when the plan sponsor signs distribution requests which is required for the distribution to be processed.   Ameritas provides recordkeeper services for the retirement plan but is directed by the plan sponsor which hires us. 

• Initial Complaint

  04/04/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  My former employer used Ameritas for retirement plans. I have been trying to close this account for 2+ years, with probably 20 attempts. Throughout this extremely frustrating process, Ameritas has been zero help. Today I get a call from the plans TPA stating after 2 years of trying to obtain my money, that I wont be receiving anything because the company is eating the entire plan in fees. If they intended to do this, they could have communicated this 2 years ago instead of wasting my time. I spoke with Supervisor Tracy *****, asking her to follow up with me via email with the dates in which they had attempted to reach my former employer over the course of the two year period of me trying to close the account, and she never sent the email, or even called me back to discuss closing my account again. I will also be filing a complaint w/ the TPA on this plan.

  

  Business response

  04/06/2023

  For this complaint, the plan sponsor (the company that sponsors the retirement plan), they are in charge in a signing off on all distribution and setting all fees.  Ameritas is a recordkeeper for the plan and does not make decisions for the plan.  On 3/6/2023, we took an escalated call as the participant was frustrated that this had not been approved.  We explained that we must have approval from the Plan Sponsor and from the TPA.  We discussed the follow-ups with the plan sponsor and TPA.   However, in looking at the fees, the plan sponsor agreed to distribution fees of $** for the TPA and $** for our recordkeeper withdrawal fee.  The balance was only $******, so the fees that were approved by the plan sponsor were more than the balance available. 

  Customer response

  04/06/2023

  
  Complaint: ********
  
  I am rejecting this response because: It took multiple escalated calls and almost two full years for this company to advise that the 401k I was trying to cash out, they’d actually be keeping in fees. This is something that should have been discussed during my first call, not my 50th. The reps were clueless, always advised a supervisor would call, supervisor never called. It literally took me 18 months to get an actual supervisor on a call. I would like signed copies of the legal documents that I signed that outlined any fees I’ve agreed to. 
  
  Sincerely,
  
  Erica *******

  

  Business response

  04/10/2023

  Distributions must be approved by the Plan Sponsor (the company you worked for) and the TPA.  We have no power to approve as we are a directed recordkeeper.   The plan sponsor approves all fees for the plan.   As a participant, you do not approve these fees.   For any copies of the contracts or to file a complaint, please contact your employer that sponsored the plan.  

• Initial Complaint

  03/31/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I’ve been trying to get Ameritas Life Insurance to cancel a life insurance policy I had I did the proper paperwork and mailed it twice and just fax paperwork on the 29thof March.Now I’m getting a email saying I haven’t been paying but they still taking *** a month.. This is bad for business I would get told to hold on and then the call hangs up, I also emailed them about it and I was told Idomt have a policy with them. I hope someone else has better luck with them

  

  Business response

  04/11/2023

  Please find the attached response.

  Respectfully,

  Emmett ******** 

  Customer response

  04/11/2023

  
  Complaint: ********
  
  I am rejecting this response because: I wrote and did what was necessary several times and because they dropped the ball with bad customer service. I would get put on hold and transfer to the next representative to getting hung up on. It should not have taken to get a response from them 
  
  Sincerely,
  
  Jacqualine *****

  

  Business response

  04/18/2023

  Please find the attached follow up response. 

  Respectfully,

  Emmett ******** 

  Customer response

  04/19/2023

  This insurance company is a **** and would not recommend them to anybody based on their slow response on the matter 

• Initial Complaint

  03/25/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  Hello, I purchased an Ameritas dental insurance plan through ****** ****** on 1/12/2022. I have paid my premiums every month without fail however, Ameritas has decided that they do not have to honor their end of the insurance 'bargain' and are now saying that they will not cover 4 crowns I need to have placed. They are saying they will not cover them because my plan only allows 1 instance of a permanent crown per tooth within 5 years. I have not had any permanent crowns placed on these teeth at all, ever. I had a permanent BRIDGE placed in 2004 which has since failed and these crowns are to replace that failed bridge. When I filed an appeal of this decision, Ameritas came back and said that they would not cover the crowns because I have had a temporary bridge in place for more than 12 months. WELL. That bridge was placed in December 2021 prior to my getting two implants placed (these were placed the week before I purchased my insurance plan, and were not covered by Ameritas). I then had a falling out with my prosthodontist in June 2022 *** ** *** ********** ******* ********* ******** ********* **** *** *** ***** ************ ** *** ***** ***** ** ********** and it took me 6 MONTHS to find a dentist that would take me as a new patient - it then took me another 2 MONTHS to get in to see the prosthodontist that is now filing a preauth for these four crowns. The fact that Ameritas is using an excuse of 12 months in a temp bridge to not cover these crowns is just incredible * ********** *********** *** ***** ** ********* ***** ***** ** ** * ******** ** **** * ******** **** ** ****** *** ********* *** **** ** **** **** ** * ******** *** ***** ******** AND there is absolutely no mention whatsoever in my plan documents of a time frame in which permanent crowns need to be placed after temporaries have been placed. This is inexcusable, and a giant corporation trying to shirk its responsibilities to an insured person who has paid all premiums and met all other requirements.

  

  Business response

  03/28/2023

  March 28, 2023
  
  BETTER BUSINESS BUREAU
  ***** * **
  ****** ** *****
  ***** ***** ******
  
  
  
  
  
  RE:      Complaint Case #:      ********
              Customer:                   Jessica *****
  
  
  Dear Ms. ******:
  
  Receipt of your March 24, 2023 correspondence regarding the formal complaint filed by our member, Jessica *****, against Ameritas Life Insurance Corp. (“Ameritas”) is acknowledged.
  
  We are sorry to hear of Ms. ******* dissatisfaction with Ameritas. At Ameritas, we strive to provide excellent customer service to our customers.
  
  While we would very much like to respond directly with you regarding the issues addressed by our member’s dependent, in the absence of an Authorization for Release of Protected Health Information, as required by HIPAA; we are unable to communicate with you regarding any plan information for Jessica *****.
  
  Enclosed is an authorization form for Ms. ***** to complete and mail or fax (************) to my attention. Upon receipt of the completed authorization, we will be more than glad to respond directly with you.
  
  We have reviewed the information that your office forwarded to our office, and we will respond to our member in a timely manner.
  
  Sincerely,
  

  Scott *****
  
  Scott *****
  Quality Control Section
  
  Enclosed: Authorization to Release Health-Related Information

  Customer response

  04/05/2023

  I spoke with several people at ameritas yesterday, and I was able to get everything straightened out. They are covering the crowns per my contract now and I would like to close my complaint. Thank you. 

• Initial Complaint

  02/16/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Ameritas decided to pull $****** after not billing my account for 3 months without my approval. I received a voice-mail from my dental office saying my insurance was invalid and when I looked it showed Ameritas had not pulled since Nov 2022 so it was clear that Ameritas had canceled my insurance but then decided to rebill my account on Feb 16th 2023. I have screenshots of my bank statements to prove it and when I call I get routed to a automated message saying they cannot take my call and to use the self service options.

• Initial Complaint

  02/16/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Website impossible. Getting in touch is near impossible. It claims it failed to receive claims from 2 dental offices (that are quite credible). Ameritas is supposed to pay the dentist and the dentist is supposed to pay the patient. Meanwhile, the patient must pay the dentist. A ridiculous convoluted process that seems designed to avoid payment. Nothing seems to work. Just getting an email address was a big hurdle. But no money changes hands, though Ameritas is quite adept at collecting premiums from my **** card. I'd guess I've been swindled out of approximately $***** plus two $*** monthly premiums so far. Also, Ameritas will not confirm in writing that I cancelled, which I did by speaking to an employee over the phone 1/27/23. I suspect it plans to keep deducting premiums from my **** account. I want Ameritas to fulfill its contract and pay the dentists so they can pay us. I want it to cancel my policy and collect no premiums after 2/1/23, as it's supposed to do.

  

  Business response

  03/13/2023

  This is our response to the Better Business Bureau complaint received in our office.

• Initial Complaint

  02/14/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Ameritas Vision taking money out of my checking account. This is unauthorized I don't know anything about this company. I have never in my life. heard of Ameritas. How did Ameritas get my checking Account number. I received a letter in the mail stating that I am a customer of Ameritas. I am not a customer of Ameritas. I am going to report Ameritas to the ********** Department of Insurance. And to the ********** Department of Insurance. the Letter states that Ameritas is taking ***** dollars a month out of my checking account every month. Who gave this company permission or authority to take ***** dollars a month out of my checking account for vision. I want all my money back immediately. I reiterate, I am going to contact ********* Department of Insurance and ********** office of the Attorney General this is an unauthorized deduction of ***** dollars a month. I want all my money back immediately. I want a refund immediately.

• Initial Complaint

  02/11/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Greetings, I enrolled for a policy for dental and vision insurance on 1/10/23. I canceled on 1/11/23 and received my refund for my initial payment. I was charged on 2/11/23 fraudulently In the amount of $*****. Please refund my money, or you will be taken to court.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩