Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page. Whole life insurance seems like a total ripoff. It's a terrible investment, comes with tons of fees, and it's not really that great of a tax deferred investment. However, I'm in a high risk profession from a liability standpoint and I hear that in Texas whole life cash value is protected from lawsuits. Is this a good enough reason to invest in whole life? Favorite Answer No. LIABILITY insurance is lawsuit protection. Life insurance is DEATH protection. Life insurance is a CRAPPY investment. And I bet that saleman didn't mention that your retirement accounts are also protected from lawsuits here in Texas. If the goal is protecting your assets from lawsuits, you probably need to talk to an estate planner who can set up a trust.
Insurers did not want to generate lawsuits or create distrust among consumers. That attitude is changing now that most people who bought universal life insurance in the 1980s are over 70 years old, with few alternatives. How Much Are Premiums Going Up? The Wall Street Journal estimates that the extra annual cost range from about $150 a year for a $250, 000 policy to six-figure sums for policies above $10 million, depending on your insurance company. What Options Do Policyholders Have? There are not many options — especially for policyholders who are over 50 years old, which is why many of them have joined class action lawsuits. Each option has major disadvantages: Refuse to pay the higher monthly rate: The cash value account will deplete and the policy will eventually lapse. Take whatever cash remains: You must give up the policy and pay taxes on the cash. Change life insurance policies: Older people in poor health may not be able to find an affordable replacement policy. Reduce the death benefit: This extends the period of coverage but reduces the payout.
Class Action Filed Against Transamerica Life Insurance Co. Over Massive Premium Increases In May 2016, a class action lawsuit was filed against Transamerica Life Insurance Company on behalf of a group of universal life policyholders who experienced a sudden 38% increase in monthly deductions withdrawn from their accumulation accounts. Plaintiffs allege that unilateral action by Transamerica resulted in massive increases in policyholder premiums, and that the company falsely stated that the increase was permitted by the policy terms. Additionally, the class action alleges that Transamerica's real reason for the premium increase was to subsidize the cost of meeting its interest guarantee, to recoup past losses on the policies and other investments, and to make the policies more profitable by forcing terminations by those policyholders who could not afford the rate increase. Do I Have a Life Insurance Fraud Lawsuit? The Class Action Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in life insurance fraud lawsuits.
Banner Life Insurance Class Action In April 2016, Banner Life Insurance Company was hit with a class action (PDF) over massive cost increases. Some plaintiffs were told their monthly payments would rise as much as sixfold. Lawyers say policyholders were misled and Banner's actions are "tantamount to an attempt to cancel the policies and/or raid the policies of accumulated policyholder savings. " Transamerica Life Insurance Class Action In February 2016, Transamerica Life Insurance was hit with a federal class action (PDF) over massive price increases — Case No. 2:16-cv-01378. In the late 1980s, Transamerica sold universal life insurance policies that guaranteed rates of no less than 5. 5% annually. In August 2015, the company suddenly increased the deductions withdrawn from policyholders' cash value accounts by 38%. Do I have a Cost of Life Insurance Lawsuit? Attention Lawyers: We consider a referral from another law firm to be one of the greatest compliments. If your firm is interested in referring us a case or for us to send you a list of previous award judgments and/or average referral fees, please visit the Lawyer Referral section of our website.
With basic life insurance, the policy only pays out if the policyholder dies within a specific timeframe and the policy does not include a savings component. Universal Life Insurance Complaints Companies including Transamerica Life Insurance Company, Conseco, AXA Equitable Life Insurance Company, and Voya Financial all face criticisms they have unreasonably increased the rates for their universal life insurance policies. Critics allege the companies are doing so to subsidize the cost of meeting interest guarantees, recover past losses, and make policies more profitable by pushing out policyholders who could not afford the rate increase. These increased rates could have a hugely detrimental impact on policyholders. Many people reportedly purchased universal life insurance policies decades ago, meaning they may not have the option of finding new life insurance policies. Those who cannot afford to pay the new rates may have more money deducted from the policy's cash value until the cash runs out and the policy lapses.
They also lied about my payoff amount and penalties that would incurr. Indiana on May 23, 2008 My Father recently passed and my Mother needs the money to live on. If she withdraws the money in the next 10-years she will lose 15% of their principle investment. This is a crime perpetrated on the elderly and Allianz should be forced out of business!!!! Louisiana on April 13, 2008 Over $109, 00 of my money is invested in this company only to find out that my insurance salesperson wasn't honest in givinf me details of penalty involved. If this practice of deception continues and I need money for emergency this could be fatal! I just signed my contract a week ago. Minnesota on October 19, 2007 I am 68 years old, and have been diagnosed with Emphysema. My life has changed. I have a need to withdraw my money, so I can have a better living situation. I was told I would have to pay this huge amount of surrender charges, and I won't have access to my money for a long time, if I choose to take it out annually.
Usually, the plan's insurance policy has a provision that designates separate deadlines for filing administrative ERISA claims, appeals, as well as lawsuits. Failing to file in time could leave you without any recourse. ERISA petitioners whose ERISA life insurance claims have been denied must exhaust the mandatory administrative review process before bringing a court action for judicial review. A plan's participant's cause of action under ERISA §502(a)(1)(B) does not accrue until the plan issues a final denial. However, a plan and its participants can agree to commence the limitations period before that time. If your ERISA claim has been denied, please consult with an ERISA life insurance attorney to see what the limitations provision is. Generally, the plan can adopt any limitation period but a contractual limitations provision is enforceable as written so long as the limitations period is of reasonable length and there is no controlling statute to the contrary. The plan can adopt any limitation period, as long If the limitation period is unreasonably short or there is a controlling statute to the contrary, the plan's limitation period may be unenforceable.
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The complaint spends several pages building a case to define PacLife's character. It also mentions another aspect of PacLife's product that touches on a very interesting subject… Not Blending a Policy is…Illegal? The complaint mentions policy blending by noting that: …PacLife offers agents higher commissions–up to three times higher–to steer customers into a PDX Policy with all or a substantial portion of the face amount allocated to base coverage, even the policy charges would be far less under a blended structure. This is the first I'm aware of blending showing up in an official legal complaint against a life insurer, and it introduces something I have long wondered about the life insurance industry and the marketplace for cash value-focused life insurance sales. Blending exists as a way to manipulate a policy's design and augment the cash value achievable in the policy. For those seeking out whole life insurance as a retirement option, Infinite Banking® et. al. strategy, or any other savings/wealth accumulation plan there are certainly shade of necessity for blending as a crucial component of the plan implementation.