Do You Own Minnesota Life’s Eclipse Indexed Universal Life Insurance?

If you own Minnesota Life’s Eclipse Indexed Universal Life Insurance, you may not be receiving all of the benefits promised to you upon purchase. You may be eligible to join a lawsuit or participate in a life insurance class action lawsuit investigation.

Basics of Indexed Universal Life Insurance

What exactly is “universal life insurance”? Essentially, universal life insurance policies—such as Minnesota Life’s Eclipse Indexed Universal Life Insurance or Pacific Life’s Pacific Discovery Xelerator (PDX) Life Insurance—are a type of cash value life insurance.

Policyholders are ordinarily charged a fee to cover the cost of insurance (COI), which is the cost to the insurance company of administering the policy. According to Investopedia, COI affects the cash value: if the premiums being paid on the plan exceed the COI, then that difference is added to the policy’s cash value, plus interest. However, if the COI instead exceeds the amount being paid in premiums, this could potentially eliminate the premiums being paid out of pocket.

Specifically, indexed universal life insurance is a type of permanent life insurance that is intrinsically linked to a stock market index. Through these kinds of plans, policyholders can place the cash value of their plans in an equity index account. An equity index account pays interest without the policyholder needing to actually invest their money in the market.

Through an indexed universal life insurance policy, there is the potential for significant gains. However, these policies can be extremely complicated, as well as costly, and they also bring their own considerable concerns.

Unfortunately, policyholders who choose an indexed universal life insurance policy may not always be aware of the risks associated with these options.

Indeed, some consumer advocates believe that certain insurance companies regularly misrepresent the realities of their indexed universal life insurance plans. Some may exaggerate market growth, or project inaccurate or inflated illustrations of what the consumer should expect from a policy. There may even be hidden costs or fees that the company conceals from the policyholder. Ultimately, this all may result in the policyholder receiving a much lower rate of return on their policy than they expect based on what their insurer has told them.

Minnesota Life’s Eclipse Indexed Universal Life Insurance policy promises these benefits to consumers:

• Flexible death benefit income-tax free
• Choices in interest crediting options: fixed account (capped) or indexed account (based on the S&P 500)
• A guaranteed value equivalent of a 3 percent effective annual interest rate if the policy ends because of death
• Flexible premiums: customers choose when and how they want to pay within certain limitations
• Transfers between Fixed and Indexed Accounts

However, some of these claims may be inaccurate based on what policyholders say they are actually getting out of their plans.

Filing a Universal Life Insurance Lawsuit

If you have purchased either Minnesota Life’s Eclipse Indexed Universal Life Insurance or Pacific Life’s Pacific Discovery Xelerator (PDX) life insurance within the last five years, and still maintain the policy, you may be able to join this universal life insurance lawsuit or class action lawsuit investigation.

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.

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