Anyone who purchased an indexed universal life insurance (IUL) policy.
What's Going On?
Some insurance companies, including AXA Equitable and Pacific Life, may have used misleading financial return illustrations to sell these policies.
How Could A Class Action Help?
If a lawsuit is successful, indexed universal life insurance policyholders may be able to recover compensation for any harm they suffered in buying these policies.
If you purchased an Indexed Universal life insurance policy, read on for more information.
It is believed that some companies, including AXA Equitable and Pacific Life, may have used misleading financial return illustrations when selling their permanent life insurance policies. Several consumer groups, policyholders, financial regulators and other insurance companies have even complained about the practice.
Indexed Universal Life Insurance: How Could I Have Been Misled?
When someone purchases a life insurance policy, the insurance company may provide him or her with an “illustration” of the policy’s benefits. While not binding, this illustration serves as an “educated guess” as to what the policy will be worth in any given year. The attorneys we work with, however, tipped us off to reports within the industry that suggest some companies may be misleading their customers when putting together their financial return illustrations.
It is believed that some insurers are using current interest rates and costs to project policy benefits without taking into account how the performance of stock indexes and costs charged to the policyholder can fluctuate over time. Others may be representing a higher growth rate of the stock index than what most financial experts would believe to be reasonable.
How an IUL Lawsuit Can Help
If a lawsuit can be filed, indexed universal life insurance policyholders may be able to recover compensation for any harm they suffered in buying these policies. A lawsuit could also help enact change in the industry – and stop insurance companies from engaging in these allegedly deceptive practices.