Indexed Universal Life Insurance Policy (IUL)

Attorneys at ChapmanAlbin are investigating the sale and marketing of Indexed Universal Life Insurance Policies (IULs) over allegations of deceptive marketing practices. Unlike traditional brokers, insurance agents often lack the same training and are not held to the same fiduciary standards to act in their clients’ best interests.

Many agents promote IULs as risk-free investments, suggesting that policyholders can benefit from market growth without exposure to its risks. However, sellers frequently use misleading illustrations and guarantee returns without disclosing that high fees can significantly reduce the policy’s cash value. In many cases, purchasers are encouraged to take out loans under the assumption that the returns from the IUL will easily cover the loan amount and more.

Insurance companies often partner with lenders to offer low-interest loans to IUL buyers, but agents frequently fail to explain the potential costs of surrendering the policy. Missing a premium payment can result in the loss of all previously paid premiums and the death benefit, leaving the investor with nothing.

Additionally, agents often present overly optimistic projections—referred to as “illustrations”—that exaggerate the potential gains of these policies. While some projections make it appear that the policy will become “costless” after a few years, IULs are actually risky, complex financial products that are not suitable for most investors.

If you or someone you know has purchased an IUL and experienced financial losses, contact ChapmanAlbin for a free consultation to determine if you have a case.