Class Action Lawyer for Life Insurance Cost IncreasesA growing number of class action lawsuits have been filed against life insurance companies that substantially increased monthly deductions or premium costs.

Need a Texas Life Insurance Lawyer? Collen A. Clark is a true advocate for his clients and is passionate about helping Texans that have been injured or wronged. If the cost of your life insurance went up, you should contact our lawyers immediately. You may be entitled to compensation by filing a lawsuit.

Did Your Life Insurance Premiums Go Up?

When life insurance costs substantially increase, policyholders have few options:

  • Cancel the policy
  • Pay significantly increased rates on the same policy
  • Cash out and lose the accumulated savings

The problem is that older policyholders may not be able to find a good alternative. Before you make any changes, it is a good idea to talk to a lawyer — you may be the victim of insurance fraud.

What is the problem?

Many life insurance companies are substantially increasing the cost of insurance, monthly deductions, or premium payments — oftentimes more than doubling the payments required to maintain the policy. This is especially true with high-value policies where the insured is over 50.

Life Insurance Class Action Lawsuits

  • Transamerica Life Insurance: Class action (PDF) filed by policyholders who saw a sudden 38% increase in monthly deductions withdrawn from their accumulation accounts.
  • Banner Life Insurance: Class action (PDF) filed after some policyholders saw a 6-fold increase in their monthly payments, what lawyers called an “attempt to cancel the policies and/or raid the policies of accumulated policyholder savings.”

Interest Rates and the Cost of Life Insurance

The popularity of universal life insurance boomed in the 1980s and early 1990s. When the economy was good and investments yielded an average of nearly 10% for insurers, many insurers inked generous policies guaranteeing returns of 4-5% annually.

Business Model Crashes

With current yields under 5%, the business model has crashed. Insurers can no longer count on high interest rates to prop up their profits. They are losing even more money as policyholders reach their 70s and 80s and decide to cash out or claim death benefits.

How Much Are Costs Going Up?

To make ends meet, some insurance companies have dramatically increased costs. Depending on the insurance company, extra costs range from about $150 a year for a $250,000 policy to six-figure sums for policies above $10 million, according to the Wall Street Journal.

About Class Actions

Class action lawsuits are ideal when a lot of people have very similar legal claims against an insurance company. Lawyers choose a “class representative” and use that person’s case to fight for compensation. If compensation is awarded by a jury or settlement, everyone shares equally.

Life Insurance Fraud Lawsuits

You may qualify to participate in a lawsuit if you hold a life insurance policy with any of the following companies and your premiums increased significantly:

  • Banner Life Insurance Company
  • John Hancock Life Insurance Company
  • Transamerica Life Insurance Company
  • The Prudential Insurance Company of America
  • Lincoln Benefit Life Company
  • Zurich American Insurance Company
  • ReliaStar Insurance Company
  • ING Life Insurance and Annuity Company
  • ING USA Annuity and Life Insurance Company
  • ING/Voya (sold through subsidiary Security Life of Denver Insurance Company)
  • And more

Need a Life Insurance Lawyer in Texas?

Collen A. Clark is a true advocate for his clients and is passionate about helping Texans that have been injured or wronged.

Collen’s amazing success in the courtroom and well known dedication to his clients has earned him the recognition of his peers as one of The Top Trial Lawyers in Texas.”

The Clark Firm has assembled a team of trial lawyers with more than 100 years experience, participation in over 600 jury trials and $260 million in verdicts and/or settlements. Please use the form below to contact our Texas life insurance lawyers for a free lawsuit review.