Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
A growing number of universal life insurance policyholders are complaining about sudden and extreme premium increases.
These consumer concerns have now prompted attorneys to investigate several insurance companies over their universal life insurance policies and practices.
Universal Life Insurance Policy Increases
A number of insurance policy companies have increased their universal life insurance premiums. In some cases, these premiums have been increased by significant percentages.
Increased premiums for universal life insurance can cause serious problems for policyholders who were not expecting such increases.
Some policyholders may even have purchased their universal life insurance policies as much as several decades ago, with certain expectations about the premiums that they would have to pay, and cannot afford this increase.
Even switching to another, more affordable policy at this point can be difficult or even impossible.
Dramatic Increase in Universal Life Insurance Premiums
Certain universal life insurance policies from companies across the United States have increased their premiums dramatically in the last several months.
For instance, Lincoln Financial Insurance Company upped their premiums by 100 percent, a move that affected approximately 25,000 policyholders.
In total, across all of the companies involved in these premium increases, hundreds of thousands of policyholders have been affected.
Other companies have increased their universal life insurance premiums at a variety of levels. Some policies have increased by 40 percent, and others by over 100 percent.
On average, the universal life insurance policies have seen increases of around 70 percent.
Impact on Policyholders
Policyholders who have been affected by universal life insurance policy premium increases have a few options moving forward.
Some choose to simply pay the increased premium. Others try to find a different policy, but it can be difficult to find an affordable alternative. Some allow their policy to lapse, but this approach is often a benefit to the insurance company.
Unfortunately, most of the policyholders affected by these premium increases are elderly. Indeed, cost of insurance increases have targeted policyholders 70 and over.
At this age, many people are unable to replace their policy coverage because of age, medical conditions, and the heightened cost of replacement policies.
Insurance companies began raising the cost of universal life insurance in early 2016. In response, the Consumer Federation of America (CFA) asked that state insurance commissioners perform a review of these increases to determine whether or not they were fair.
The CFA expressed concern that insurers may be increasing their insurance rates in order to “protect their profitability,” the notice read.
Filing a Universal Life Insurance Lawsuit
A growing number of policyholders are becoming concerned with these sudden premium increases, some fearing that insurance companies that make these kinds of moves cannot be trusted to adequately protect and insure them going forward.
If you purchased a universal life insurance policy from Lincoln Financial Insurance Company or another such provider, you may be able to file a lawsuit for insurance overcharge.
If you own a universal life insurance policy with Lincoln Financial Insurance or another insurance company that was recently hit with a rate increase, you may be entitled to compensation. See if you qualify to file an universal life insurance lawsuit or class action lawsuit by filling out the form on this page for a FREE case evaluation.
Join a Free Universal Life Insurance Class Action Lawsuit Investigation
If you purchased a universal life insurance policy through Lincoln Financial Insurance or another insurance company, you may qualify to join a FREE class action lawsuit investigation and pursue compensation.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.