Lincoln Financial Insurance Company Among Insurers Increasing Rates

Lincoln Financial Insurance Company was added to a list of universal life insurance policy companies that planned to increase its premiums.

Lincoln Financial Insurance Company is just one of several such insurance companies that have announced premium increases, in some cases by significant percentages.

This may cause serious problems for policyholders with companies like Lincoln Financial Insurance Company, who were not expecting the increase—especially for those who purchased their universal life insurance policies decades ago.

For these policyholders, finding an affordable alternative at this point can be difficult or even impossible.

In October 2016, the list of universal life insurance policy companies increasing added Lincoln Financial Insurance Company. These policies went up by 100 percent, affecting approximately 25,000 policyholders.

The policies affected by this increase are those issued by Jefferson Pilot Life between 1999 and 2007.

Universal Life Insurance Policy Increases

Lincoln Financial Insurance Company and others have increased the cost of insurance (COI) policies dramatically, from 40 percent to, in some cases, over 100 percent.

Although the policy increases go as low as 40 percent, the majority of those affected have seen increases of upwards of 70 percent. In the case of Lincoln Financial Insurance Company, certain insurance policies have increased 100 percent.

The Lincoln Financial Insurance Company policies affected purchased through Jefferson Pilot Life are known as the “Legend Series,” and include:

• JP Legend 300
• JP Legend 200
• JP Legend 100

For policyholders who are affected by cost of insurance increases from Lincoln Financial Insurance Company or elsewhere, there are a few paths forward. Some choose to simply pay the higher premiums, even if they are extreme.

Others find a different policy, allow the policy to lapse, or reduce the death benefit. Lapsed policies likely benefit the insurance companies holding the policy.

Though similar in name, universal life insurance policies are actually different from term life insurance policies. Term life insurance policies have fixed costs and fixed benefits, while universal life insurance is more of an investment, and last for the life of the holder.

Over the holder’s life, the insurance policy’s cost is deducted, the remaining value going to the holder. These universal policies have a guaranteed interest rate at point of sale.

Interest rates of universal life insurance policies have decreased since the peak of their popularity in the 1980s and 1990s, companies claiming that this has led to a struggle with paying out the benefit of the policies agreed upon when interest was higher.

After insurance companies began raising the COI rate in early 2016, the Consumer Federation of America asked that state insurance commissioners review the increase to determine if companies were raising the COI fairly. The CFA worried that insurers may be increasing their insurance rates in order to “protect their profitability,” the notice read.

Lincoln Financial Insurance Company Universal Life Insurance Lawsuit

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.

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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