IUL - Indexed Universal Life - Lawsuits

  • 2024 0626 - insurancenewsnet.com - Attorney rips insurers, agents over ‘incredibly complex’ IUL-focused plans, by John Hilton - [link]
    • Attorney Robert Rikard - “Almost all of these people are either retired or about to retire,” Rikard said of his clients. “This plan was sold to them as a retirement plan. They were encouraged to move money out of qualified retirement accounts to the IUL as a retirement vehicle. And the policies have either lapsed or are on their last leg at this point because they can't afford to make more premium payments and the policy charges and expenses are wiping out their cash value. ”
    • IUL sales are sealed with illustrations and efforts continue to clean up the practice. The combination of agents who often don’t fully understand the product and an unrealistic illustration is frustrating regulators and consumer advocates alike.
    • “These products are just incredibly complex,” Rikard said. “When you get into the weeds with these agents, they really don't understand how these products work. They're simply relying on the illustration to sell the product and the illustration is the best-case scenario if every single thing in that illustration works correctly.”
    • [South Carolina, Oregon, Pacific Life, Agent, FIP - Future Income Payments,