Some consumers who signed up for bank or credit union accidental death and dismemberment insurance may have been overcharged for the benefits they receive.
What Exactly Happened?
Consumers may receive an offer to sign up for a free $1,000 in bank or credit union accidental death and dismemberment insurance, with an option to upgrade to $300,000. Those who elected for this may only have needed to check a box and sign the solicitation they received to upgrade to the greater coverage. This may have activated a small automatic charge every quarter, between $8 and $100.
Some customers may not even realize that they’ve signed up for this AD&D coverage. Check your bank or credit union statements to see if such a charge is appearing.
“The internet highway is littered with consumer complaints about unauthorized deductions for AD&D policies people didn’t remember requesting and didn’t know they’d been paying for,” Amy Bach, executive director of the United Policyholders activist group, told the LA Times.
Unfortunately, these deals for bank or credit union accidental death and dismemberment insurance may be charging consumers inflated rates—for insurance that they are unlikely to actually need. Indeed, there are only about 169,936 deaths each year from unintentional injuries according to the Center for Disease Control and Prevention. And the likelihood of losing a limb in the workplace, on vacation, or elsewhere is pretty low in the modern day, though certain occupations may somewhat raise that risk.
The direct marketing company Franklin-Madison Group (formerly known as Affinion Benefits Group) has been aggressively pitching bank and credit union accidental death and dismemberment insurance to financial institutions, framing it as a “customer appreciation” program—a gift to reward their loyalty.
When customers sign up, they are not only paying for the insurance itself, but a hugely inflated premium, a large portion of which goes back as a commission fee to Franklin-Madison/Affinion.
What Companies May Be Involved?
A number of companies are believed to have been partnered with Franklin-Madison/Affinion in the past. These companies may include:
- Federal Insurance Company
- Hartford Life and Accident Insurance Company
- Minnesota Life Insurance Company
- Mutual of Omaha
- Transamerica Premier Life Insurance Company
- US Life Insurance Company
What’s Being Done About This Issue?
Reportedly, this AD&D scheme has been going on for years. Now, an investigation has been launched into the Franklin-Madison/Affinion offer and the financial institutions that partnered with the company. This investigation can help consumers recover compensation in exchange for the money they were overcharged, as well as hold those responsible accountable for their actions, hopefully requiring both insurance companies and direct marketing companies like Franklin-Madison/Affinion to change the methods they use to market their products.
Can I File a Lawsuit?
If you have been charged for bank or credit union accidental death and dismemberment insurance after signing up for a “free” offer, you may be able to join this class action insurance lawsuit investigation. A consultation with a knowledgeable attorney
Join a Free Accidental Death Insurance Class Action Lawsuit Investigation
If you were charged for accidental death and dismemberment insurance after signing up for a free offer, you may be able to join this accidental death & dismemberment insurance lawsuit investigation.
This article is not legal advice. It is presented
for informational purposes only.
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119 thoughts onDid You Purchase Credit Union Accidental Death and Dismemberment Insurance?
I’ve been paying my policy for several years at $148.50 per quarter, I would like my money returned, thanks!
Paying thru credit union, then stating unable to collect premium due thru credit union, and required manual payment which charges manual billing fee. Was setup thru credit union why payments required manually to do.
query: Franklin Madison Group LLC and Madison Insurance company .. this was offered through my bank at the $1000 free.
It was advertised as “Life” insurance which is what I thought I had signed up for only to find out that it is only for Accidental death and dismemberment. Not life insurance but accidental death insurance. When we signed up we spoke to them on the phone and were assured that it was indeed actual Life Insurance, but now find out it’s been changed. I need to speak to an attorney about any open lawsuits against these companies I might join to recover not only the premiums paid so far and any fees charged to my acct, but also for damages of them lying and possibly leaving my wife with nothing if I died with us thinking I was covered by actual life insurance.
I’ve had this franklin madison insurance for at least 4 years or more and I’m not getting any correspondence from them, all I continue to get is charged a monthly sometimes twice in one month mostly around the first and last of the month. I honestly don’t even know, why I was told to sign up for this through my credit union. So I’ve been trying to contact via online. Every time I get on their website it’s saying. This page is currently being worked on. I called my bank to get them to put a stop payment on them and all I got was put on hold for almost an hour. So I eventually hung up. I’m just wanting to cancel this insurance policy because all they do is charge my account even when it’s in overdraft.
I’ve been trying to cancel that phony Life Insurance baloney. They were telling me saying oh, you’ve got 3000 in your account blah blah, it’s like no I want to cancel it. I’m tired of you. Stealing $72 out of my account every quarter. They’re not taking no for an answer so I will be closing my bank account with financial institution. Let them try to get money from an account that doesn’t exist.
How do we participate in in this class action lawsuit against Franklin Madison and Minnesota Life Insurance? They both are in cahoots with each other and feed off of each other lies. We had a policy in 2021 of 300k and when it was time to cash out, we were told we only had the $1,000.00 free Credit Union coverage. We ask to see our written policy for 2021 and was told by both company’s we can only get a copy of the current active coverage. Makes me believe there was no actual policy even written!