Do You Own PacLife’s PDX Indexed Universal Life Insurance?

Individuals who purchased PacLife’s PDX Indexed Universal Life Insurance may have been misled about the risks and fees associated with the coverage.

Indexed Universal Life insurance policies can be attractive to consumers because they combine the flexibility of life insurance premiums while also allowing policyholders to increase the policy’s cash value.

All cash value life insurance products are associated with a “cost of insurance” that includes the costs of underwriting and the costs associated with maintaining the life insurance policy. When a policyholder pays premiums that exceed the cost of insurance, the excess amount is credited to the policy’s cash value along with any interest on that amount.

In some cases, interest rate is set by the underwriter. Usually, the interest rate is around 2 percent. However, in an Indexed Universal Life insurance policy, the interest rate is tied to the stock or bond market.

These policies are offered by numerous insurance companies, including Pacific Life (also known as “PacLife”). PacLife touts itself as a reliable life insurance and retirement company that has been in the game for over 150 years.

The company reportedly manages $158 billion in assets and consumers allegedly rely on the company to “protect what matters most to them – their families, their businesses, their futures.”

PacLife’s PDX Indexed Universal Life insurance policy reportedly provide a “tax-free death benefit,” “tax-deferred growth potential,” and “tax-free supplemental income potential,” according to the company.

“Pacific Discovery Xelerator [Indexed Universal Life] provides life insurance protection with the ability to accumulate cash value at index-based interest crediting rates,” PacLife states. “With flexible premiums, you can properly fund your policy for lifelong protection and/or the ability to supplement your retirement income via tax-free policy loans and withdrawals from the policy’s available cash value.”

Although the coverage and benefits seem too good to pass up, PacLife’s PDX Indexed Universal Life Insurance may be associated with undisclosed fees. Consumer advocates suspect that PacLife may not be property warning customers of their policy’s true value.

PacLife insurance agents reportedly use “illustrations” show customers an example of how Indexed Universal Life Insurance works. These illustrations are reportedly provided to insurance agents by PacLife with the goal of providing a general picture about how much a policy will be worth. However, these projections may not be completely accurate.

Advocates for consumer rights believe that insurance companies do not sufficiently warn consumers about the growth potential. Additionally, Indexed Universal Life Insurance policies are inherently complicated. This means that consumers may not fully understand the terms and risks associated with their policies before the agree to purchase coverage.

With the help of the National Association of Insurance Commissioners, attorneys are investigating the policies of insurance companies such as PacLife to determine if consumers were deceived or misled when accepting the terms of their life insurance policies.

It is important to note that legal professionals are not investigating allegations against individual life insurance agents. Instead, they are looking into claims regarding insurance companies as a whole.

Join a Free PacLife & Minnesota Life Lawsuit Investigation

If you purchased the Pacific Discovery Xelerator (PDX) Universal Life policy from PacLife or the Eclipse IUL from Minnesota Life in the last 5 years, you may qualify to join this universal life insurance lawsuit or class action lawsuit investigation.

Learn More

This article is not legal advice. It is presented 
for informational purposes only.