Tuesday, February 9, 2010

WHAT’S NEW WITH MY PARENTS ACCOUNT

Since, I haven’t posted anything for almost two years I will bring you up to date. My parents had 22 policies when the receivership took control in May 2004. All of our policies were voted upon “to keep” and we have made all premium payments so far. We have had three policies “mature”, one in 2007, 2008, and 2009. I will provide information on each of these policies, so that you can see how it was reported and what you may want to question.

  1. As I had stated in my last posting, one of our policies “matured” July 21, 2007. I received a letter from VSI notifying the date of death on July 24th and was reminded that it may be several months before the death benefit would be paid. After reviewing the policy records, I noticed that the payment due date of the last payment cycle was July 20, 2007. I was more than a little curious about how the receiver would deal with investors who decided not to pay their premiums. In late October 2007, I received a Notice of Premium Shortfall on this policy. I immediately sent a check to VSI by overnight mail to make up the total shortfall amount needed. I received my check back in few days with an explanation that the Shortfall Notice was sent out in error and that the death benefit would be paid to all investors having policy interest whether they had paid their last premium invoice or not. The death benefit was paid in mid February 2008. The death benefit correctly matched our shown percentage interest, but we weren’t able to confirm the amount of premium returned or the interest.

  2. In November 2008, I received notice that another policy had “matured” and received payment two weeks later. I checked with VSI and was told that the date of death was 8/31/2008. Since the death occurred before the policy premium was due, I received a full return of our premium payment but not the administration fee. The death benefit was correct, but again no means of verifying the amount of interest paid or any explanation as to why the administration fee wasn’t returned.

  3. On December 11, 2009, I received a check for another “matured” policy. This time I had no other notice other than the check. Again, I contacted VSI and learned that the date of death was May 30, 2009. Since the death again occurred before the policy premium was due, I received the full premium back and again without the administration fee. While I didn’t have any way to verify the interest received , I noticed that this death benefit was about 10% larger than our first one, the waiting period was the same, but the interest received was only 1/3 of our first policy. Also, there was a brand new processing fee of $200.00.


This is a summary of the account:

Total Administration Fees Paid
Total Policy Premiums Paid
Total Money Paid to VSI
Total Money Received from VSI
Short Fall Money Paid

$13,343.60
$155,480.00
$168,823.60
$182,044.15
$34,544.82




Please note that the Administration Fees for this account is 8.58%. In my opinion, I believe that this is extremely high for what is provided. I would appreciate your comments.

8 comments:

Anonymous said...

Your right about the fees. In their accounting to the court about the fees, the payroll for 31 people per year was over 1,900,000 for an average salary of 61,290. f0r Florida clerks who rarely answer the phone when you call.

Anonymous said...

Yo no he recido ningun cheque, ten go varias semanas esperando, me gustaria saber cuanto mas tengo que esperar?

Anonymous said...

what is happend when i cant´t pay my payment?i lose my money but can i get trouble with litai?
thank you for any information

Anonymous said...

In the last year of operation I visted Mutual Benefit's Ft Lauderdale office, saw the international section and met their attorney. Is this the guy who got 5 yrs. sentence for his involvement? And what penalty did K. get, the manager who accepted the funds? Sorry for everyone's financial loss here, my other savings took a shot with Lehaman's and Maddoff's messes. Party your funds before the others do.

Anonymous said...

In March, 2010, I received a letter that one of my policies had "matured" and the disbursement will be forthcoming. It has been 2 years and nothing has happened. The emails bounce back because the address given on the Litai website does not exist. The scam continues! Hard to tell if I should give up on ever seeing the money.

Anonymous said...

customerservice@litaiassets.com
is their email address. They usually respond within 2-3 business days.

Anonymous said...

I have a policy for sale worth $50,000 any offers?

Anonymous said...

Is it possible to sell a policy before it matures? if possible, what process can I follow? Thanks