Indexed Universal Life Insurance Policy Investigation

06.28.2019

Girard Sharp is investigating reports that certain providers of Indexed Universal Life Insurance (IUL) policies, such as Pacific Life Insurance Co. and Lincoln Financial Group, are allegedly misleading customers with unrealistically high cash-value projections in policy illustrations.

If you purchased an Indexed Universal Life Insurance policy after 2015, you may have a claim for relief. Protect your rights by speaking with a Girard Sharp consumer protection attorney—dial (415) 981-4800 or submit your information below.

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Overview of Reported Conduct

Growth in the cash value of an IUL is linked to a stock market index and capped such that the interest credited to an account cannot be less than 0%. Many insurance firms offer bonuses and multipliers on the credited interest rate, and often charge clients extra money—in many cases over 1% annually—for those upgrades. According to recent reports, however, these bonuses do not guarantee a substantial return, particularly when the stock market is down.

The reported issue is that insurers seem to be using these bonuses to deceive consumers by illustrating returns at rates higher than otherwise contemplated by a 2015 actuarial guideline, and the insurers do not clearly disclose that the advertised returns are based on that higher, non-guaranteed amount. In short, insurance companies are reported to be baking projected results from bonuses and multipliers into their policy illustrations, resulting in illustrations showing unrealistically inflated projected returns.

In an InvestmentNews article reporting on this issue, Paul Berlin, president of Executive Planning Inc., said the insurers have been creating a “façade” and that customers are “lucky if [they’re] going to get half [of what they’ve been illustrated].”

If you purchased an Indexed Universal Life Insurance policy after 2015 and believe you may have been misled, you may have a claim for relief. Protect your rights by speaking with a Girard Sharp insurance attorney (dial 415-981-4800) or by submitting your information above.

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Girard Sharp has earned national Tier 1 rankings for Mass Tort and Class Action Litigation and has been named to the U.S. News – Best Lawyers “Best Law Firms” list each year since 2013. Read about some of our results.

We represent policyholders against some of the nation’s largest life insurance companies—John Hancock Life Insurance Company (U.S.A.), Lincoln National Life Insurance Company, and State Farm Life Insurance Company—and have obtained successful results for our clients.

For a free consultation about your potential claims, contact one of our public protection attorneys at 1.415.981.4800 or fill out the form toward the top of this page.

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