August 5, 2022 – Investigation Closed, Lawsuit Continues
Thank you to everyone who reached out to us in regard to this matter. At this point, attorneys working with ClassAction.org have decided to close their investigation, meaning they no longer need to hear from individuals who had policies serviced by Brighthouse.
One proposed class action lawsuit has been filed and continues to make its way through the legal system.
The information below was posted when this investigation began and remains for reference only.
At A Glance
This Alert Affects:
Anyone who has a universal life insurance policy serviced by Brighthouse that says the cost of insurance rates will be based only on outlook for mortality and expenses.
What’s Going On?
A proposed class action lawsuit has been filed against Brighthouse Life Insurance Company alleging owners of certain universal life insurance policies have been unfairly overcharged for years.
How Could a Class Action Help?
A class action lawsuit could help policyholders recover any money they may have overpaid for their life insurance.
Anything Else I Should Know?
The lawsuit pertains specifically to universal life insurance policies, which combine death benefits with a savings or investment component known as the “cash value.”
A proposed class action lawsuit has been filed claiming that owners of certain universal life insurance policies serviced by Brighthouse have been unfairly overcharged for years.
Specifically, it has been alleged that Brighthouse Life Insurance failed to take into account that mortality rates are getting better – a fact that would have decreased policyholders’ monthly charges.
If you have a universal life insurance policy that’s serviced by Brighthouse, it’s possible you may have been overcharged.
How Do I Know If Brighthouse Services My Life Insurance?
You can check your monthly statements to see if the paperwork indicates that Brighthouse is the servicer. It’s believed some of the affected policies were originally sold by Travelers and Metlife but are now owned and serviced by Brighthouse.
According to the case, these policies combine death benefits with a savings or investment component known as the policy’s “cash value.” Each month, the policyholder will have a “cost of insurance” charge – which is deducted from the cash value component – processed. The cost of insurance charge represents the company’s risk – that is, the chance they may have to pay out death benefits – and is based contractually on mortality rates.
If your policy or statements reference cost of insurance and cash value, or if you received a letter stating that your policy’s cash value is nearing zero and that, to keep the policy alive, you’ll either have to pay a higher premium or contribute a lump sum, you probably have universal life insurance.
How Could I Have Been Overcharged?
The insurance contracts at issue promise that the cost of insurance rates will be based only on future outlook for mortality and expenses.
The class action complaint alleges that this means that Brighthouse also has an obligation to decrease the cost when there has been an improvement in life expectancy.
Despite the fact that life expectancy has consistently increased over the past decades due to advances in medicine and other factors, Brighthouse has not lowered the cost of insurance charge that’s assessed to policyholders, forcing them to pay an inflated amount, according to the lawsuit.
How Could a Class Action Lawsuit Help Me?
A class action lawsuit could provide policyholders the chance to recover any money they may have been overcharged and force Brighthouse to lower its cost of insurance charges.