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Problems With Family Heritage Life Insurance Company of America

Companies serving the public are vulnerable to negative feedback as well as positive feedback. One individual may have a positive experience and his neighbor a negative one. Differences depend on the type of service rendered, when an event occurred, the people with whom the customer interacted and other variables. The data on Family Heritage Life Insurance Company is mixed. Whether or not to patronize the business is ultimately up to an individual. One person's decision may be different from another person's.

  1. About Family Heritage Life Insurance Company

    • Family Heritage was founded in 1989 in Cleveland, Ohio. The insurance company sells supplemental health insurance policies covering cancer-related illnesses, intensive care, heart attack and strokes, accidents and hospital stays. The policies cover the additional costs incurred when undergoing treatment and recovering from an illness, such as transportation to medical facilities. The company also sells life insurance. Family Heritage ranked No. 3,532 on Inc. Magazine's 2010 ranking of the top 5,000 fastest-growing private companies in the United States. 2009 revenues were $152.2 million. The company employs approximately 99 people.

    Family Heritage Survey

    • A survey conducted by Free Advice, an insurance informational website for consumers, found that 73 percent of respondents were satisfied with Family Heritage and 18 percent were very dissatisfied. Consumer comments varied greatly from extremely happy with the payments and service received to extremely unhappy and upset. Consumers complained of nonpayment of claims because of what they perceived as excuses given by the company. The largest number of complaints came from consumers canceling policies. Monthly premiums continued to be withdrawn from checking accounts. Consumers faced a series of obstacles attempting to resolve the situation. They voiced their anger and frustration, complaining of discourteous customer service representatives, unreturned phone calls, unresponsive agents and disappointment in the professionalism and service provided by the company.

    Family Heritage Medical Policies

    • A problem voiced about the company's supplemental health insurance policy is that claims are paid based on fixed costs stated when the policy is purchased. There are no adjustments made over the years for inflation. A stated amount will be inadequate even five years from the purchase date. Another questionable practice or gimmick promoted by Family Heritage is a "return of premium" benefit on the supplemental health insurance policies. This means that after a certain amount of time paying premiums with no claims --- usually 25 years --- the policyholder's premium payments are reimbursed. One important question is: Will the company survive for 25 plus years and be around to make the payments? The A.M. Best firm, which rates insurance companies, gave Family Heritage in 2011 a B++ rating, the fifth-highest rating. Fitch, another rating agency, rated the company BBBq as of 2011, the ninth highest mark from that firm. These ratings are above the "vulnerable" rating but are not especially comforting when looking 25 years into the future.

    Agent Complaints

    • Some insurance agents have expressed dissatisfaction with the company. The company provides training at its Cleveland headquarters but apparently does not make it clear to prospective agents that the cost of transportation and lodging must be reimbursed. The main marketing method employed by the company is door-to-door sales. Soliciting sales by cold-calling homes in this age is uncommon. The company apparently does no other kind of major advertising, marketing or product promotions. Agents complained that prospective customers had never heard of the company. The marketing technique expected is a "hard sell," even though agents believed the company offered a good product.

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