Call Today for a FREE Confidential Case Review - Toll-Free 24/7 (866) 920-0753

Life Insurance Class Action

Life Insurance Class Action

Life insurance companies who suddenly increase costs are facing a growing number of class action lawsuits from angry consumers.

What You Can Do & How We Can Help

The Schmidt Firm, PLLC is currently accepting life insurance fraud cases in all 50 states. If your cost of life insurance, monthly deduction, or premiums went up, you should contact our lawyers immediately for a free case consultation. Please use the form below to contact our Class Action Litigation Group or call toll free 24 hours a day at (866) 920-0753.

Did Your Life Insurance Costs Go Up?

Some life insurance companies are substantially increasing monthly deductions or premium payments required to keep the policy active. This is especially true for policyholders over 50 years old and large cash-value accounts. There are few options for policyholders when costs go up:

  • Cancel the policy
  • Pay much more for the same policy
  • Cash out and lose accumulated savings

Are You a Victim of Insurance Fraud?

When policyholders can no longer afford to keep their policy active, life insurance companies end up paying less in death benefits. Former policyholders may never find an affordable replacement. It is a good idea to talk to a lawyer before you make any changes to your policy — you may be the victim of insurance fraud.

Life Insurance Class Action Lawsuits

  • Transamerica Life Insurance: A class action (PDF) was filed after a 38% increase in monthly deductions from accumulation accounts.
  • Banner Life Insurance: A class action (PDF) was filed after a 6-fold increase in monthly payments, which lawyers said was an “attempt to cancel the policies and/or raid the policies of accumulated policyholder savings.”

Business Model Crashes as Interest Rates Fall

In the 1980s and early 1990s, the economy was good and insurers made an average of 10% on their investments. During this time, the popularity of life insurance boomed and many insurers inked generous deals guaranteeing 4-5% annual returns.

That business model has crashed. Current yields are under 5% and insurers can no longer count on high interest rates to prop up profits. Another problem is that more policyholders are in their 70s and 80s, cashing out their accounts or claiming death benefits.

How Much Are Costs Going Up?

The cost of insurance is supposed to be determined by the number of people who are dying — not how much money an insurance company is making. But as profits fall, costs go up. Depending on the insurance company, added 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 actions are the most efficient way to help a large number of people who have very similar legal claims. Everyone joins together and lawyers choose a “class representative” to fight for compensation on behalf of everyone in the lawsuit.

Life Insurance Lawsuits

You may qualify to file a lawsuit if you own a life insurance policy with any of the following companies and your premiums suddenly increased:

  • 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

Do I have a Life Insurance Lawsuit?

The Schmidt Firm, PLLC is currently accepting life insurance fraud cases in all 50 states. If your cost of life insurance, monthly deduction, or premiums went up, you should contact our lawyers immediately for a free case consultation. Please use the form below to contact our Class Action Litigation Group or call toll free 24 hours a day at (866) 920-0753.

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.

Free Case Evaluation

The Schmidt Firm, PLLC has been recognized as one of the nation’s leading plaintiff’s law firms and handles cases in all 50 states. We are very proud of our legal achievements, but equally self-respecting of our firms reputation for providing personal attention to each and every client we represent.

No matter what type of case you have, you may contact us with confidence by filling out the email contact form below or calling us directly by dialing toll free 24 hrs/day (866) 920-0753.

*
*
*