Universal life insurance policies issued by Lincoln Financial have experienced dramatic premium and cost increases over recent years.
This Lincoln cost of insurance increase has cost customers thousands or has forced longtime clients to reduce or cancel their policies.
Universal life insurance offers different advantages over term life insurance. Policyholders of universal life insurance are able to take advantage of flexible premiums and the savings component inherent in the product in addition to the death benefit. Universal life insurance also offers a guaranteed interest rate to customers.
However, because interest rates have been so low for many years and because of market fluctuation, companies who offer universal life insurance are having a difficult time being able to pay customers the rate which they were guaranteed.
As a response, companies like Lincoln Financial have resorted to raising the premiums and related cost amounts on the life insurance policies. These costs and premium increases are not based upon calculations of mortality and other expenses, but rather are seen to benefit the company at the expense of the customers they are supposed to serve.
The Lincoln cost of insurance increase is substantial, costing customers several thousand more dollars per year. Customers who had these policies since as far back as the 1980s are now being charged a great deal more for the same product.
Percentage-wise, the Lincoln cost of insurance increase is 100 percent, making Lincoln Financial one of the companies with the highest COI increase.
Other companies have also raised the cost of insurance. Transamerica raised its rates by more than double and AXA substantially increased its premiums as well, ITM TwentyFirst has reported.
Many of the policyholders substantially impacted by these changes are older adults who don’t have affordable alternatives to choose from, so they are essentially stuck with paying the higher costs and premiums, or they can opt for less coverage for the same premium, or they might have to allow the policy to lapse altogether because they simply can no longer afford it.
 Taking Legal Action over Lincoln Cost of Insurance Increase
If you purchased a Lincoln Financial universal life policy and were impacted by a Lincoln cost of insurance increase, you may be entitled to receive legal compensation.
Lawyers are currently investigating the alleged deceptive practices of companies like Lincoln Financial. They are looking into allegations of misleading customers by telling them the policy was financially sound when it was not, and sales of the policy based on certain assumptions made by the company, not based on actual experience.
In short, companies like Lincoln Financial may have been deceptive in their sales of these policies and allegations of fraud are being investigated.
Customers who have experienced a significant Lincoln cost of insurance increase may be eligible to file a lawsuit against the company. Insurance overcharge lawsuits have been filed against other companies providing universal life insurance.
An experienced universal life insurance attorney can review your individual case for free, and can guide you in your legal options in a no-obligation consultation.
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.
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