IUL Class Action Lawsuit Investigation Claims False Marketing
An IUL class action lawsuit investigation is underway to probe into allegations that people who purchased Indexed Universal Life (IUL) insurance policies were misled into expecting unrealistic rates of return that comes after insurance companies presented used fabricated and false illustrations in marketing literature and sales material.
IULs are used by insurance companies to show favorable growth in sample policies’ account values in future years. However, these may be misrepresented or exaggerated by linking returns with the performance of a selected stock index such as that of the S&P 500 or the Dow Jones Industrial Average.
Other times, the companies link IUL projections to lesser-known indexes that have no historical track record to depict generous future values through “back-tested” models on hypothetical returns from previous unrepresentative periods.
This practice deceives and misleads consumers as they are pulled in by the allure of unrealistic and improbably financial positives.
Did you or a family member purchase an Indexed Universal Life Policy (IUL) and are NOT receiving the returns or account value increases that were shown to you in marketing materials or sales illustrations? Contact us today to see if you are entitled to join the Indexed Universal Life Policy (IUL) Class False Marketing lawsuit investigation.
What to Know About the Indexed Universal Life Insurance (IUL)
“Universal life insurance” is a type of life insurance product that provides cash value which is affected by the cost of insurance, or COI. COIs are the costs of underwriting and maintaining the policy and when the premiums that were paid exceeded the COI, the excess, together with interest, is credited to the policy’s cash value. But if the COI exceeds the amount of the premiums, the deficit is debited from the cash value.
Interest rates are determined by the underwriter of the universal life policy but with a contractual minimum which is usually around 2%.
When the interest rates are bound by the movement of the stock or bond market, this becomes an “Indexed Universal Life,” or IUL insurance policy.
IUL policies are also permanent insurance policies that pay a death benefit to survivors, notwithstanding whether the insured has passed away. But this type of insurance offers the flexibility of adjustable life insurance premiums at face value, with an opportunity to increase its cash value without the risk of investing in securities, such as stocks. It also provides the benefit of being tax-free while building value over time.
This means that the cash value account linked to the policy allows the insured to borrow without tax consequences.
Insurance companies use sales illustrations and marketing materials showing some account values gaining favorable growth in future years to sell the IULs.
Some of the insurance companies selling IULs include:
- Pacific Life (Pacific Discovery Xelerator IUL)
- Allianz (Life Pro+Elite IUL)
- Lincoln Financial Group (WealthAccumulate IUL)
- Minnesota Life (Eclipse and Orion)
Editor’s note on Indexed Universal Life Policy; IUL Class Action Lawsuit Investigation:
This piece is written about the recent Indexed Universal Life Policy (IUL) Class False Marketing Lawsuit Investigation. If you are considered eligible to be among the class of consumers described in the class action lawsuit investigation, you may eventually be able to participate in receiving any compensation the court may award.
If you believe that what is alleged in the Indexed Universal Life Policy (IUL) Class False Marketing Class Action Lawsuit Investigation has affected you, please don’t hesitate to reach out to us.
We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join in on any potential consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.
Similarly, please check out our current list of Class Actions and Class Action Investigations, here.
Interested in articles like these? Become a subscriber below!