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May 26, 2020 by |

San Francisco and California Life Insurance and Financial Elder Abuse Attorney: Understanding Universal Life Insurance


How Indexed Universal Life Insurance Works

Don’t Be Pushed Into A Purchase

Indexed Universal Life Insurance is a complicated life insurance product often sold by insurance agents as a retirement savings or estate planning investment, Do not allow an agent to force-feed you an insurance product which you (and the agent) may not understand completely. Frankly, there usually is more benefit to them than with you. Evans Law Firm, Inc. represents clients who have suffered losses on indexed universal life insurance. If you or a loved one has suffered a loss on surrender or cancellation of an indexed universal life policy call our California lawyers today toll free at 888-50EVANS (888-503-8267) and we can help.

Agents sell Indexed Universal Life (IUL) as a product with upside market potential and downside risk. Sound too good to be true? Exactly. Here are five disadvantages of IUL contracts to keep in mind:

Fees Are High. Indexed universal life insurance charges fees for: premium expenses; cost of insurance; administrative expenses; and, surrender charges.
You do not fully participate in the market. The amount of return you receive is based on market indexes not real investments in stocks. Your participation rate in the index is not 100% and you do not receive the benefit of reinvested dividends as you would in a direct mutual fund investment,
You will lose money if you need to withdraw your funds. Surrender penalties and other adjustments are imposed for as long as 15 years on some IULs.
Your return will be capped. Even if the index you chose grows, your growth will be subject to a cap so that you do not receive the full benefit of the growth in the index. This would not be the case if you made a direct investment in a fund for the index.
“Flexible” premiums go up. Older investors are especially hit when IUL premiums increase. The IUL policy enables the carrier to increase premiums. If you are unable to pay, the policy will be cancelled and any cash value you may have will be reduced by surrender penalties and other fees.

Always consult a professional with nothing to gain from the sale of an IUL to you before you buy. Also, for any IUL or annuity or similar product, consult your tax advisor before any purchase or surrender. Annuity and IUL transactions will have tax consequences.

Contact Us

If you have sustained a loss on an indexed universal life insurance policy, contact Ingrid M. Evans and the other California attorneys at Evans Law Firm for a free evaluation of your policy toll free at (888)50-EVANS (888-503-8267), or by email at <a href=””></a>. Our attorneys have experience with complex financial contracts including life insurance and annuity contracts. We can help guide any litigation through a jury trial or toward an equitable settlement. We also handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.

Annuities and life insurance produce large sales commissions for brokers but are often inappropriate products for consumers, especially seniors. Leading providers and distributors of life insurance and fixed, variable and fixed indexed deferred annuities in California, including Voya, are listed below. We are not in any way suggesting that any of these carriers or distributors has done anything wrong. Rather, the list is provided solely as a reference for our readers.

AIG/American General Life Insurance Company
Allianz Life Insurance Company of North America
American Equity Investment Life Insurance Company
American General Life Insurance Company/AIG
American International Group, Inc. (AIG)
American National Life Insurance Company
Athene Annuity & Life Assurance Company
Athene Annuity and Life Company
Athene USA
Aviva Life Insurance Company
AXA Equitable Financial Services, LLC
AXA Equitable Life Insurance Company/AXA US
AXA Advisors, LLC
Brighthouse Financial, Inc./MetLife
EquiTrust Life Insurance Company
Fidelity & Guaranty Life Insurance Company
Genworth Financial, Inc.
Genworth Life and Annuity Insurance Company
Genworth Life Insurance Company
Guggenheim Partners, LLC
Guggenheim Partners/Security Benefit Life Insurance Company
ING USA Annuity and Life Insurance Company
Jackson National Life Insurance Company
John Hancock Life Insurance Company
Lincoln Benefit Life Company
Lincoln Financial Group
Massachusetts Mutual Life Insurance Company
Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.
Minnesota Life Insurance Company
Nationwide Investor Services Corporation (NISC)
Nationwide Life and Annuity Insurance Company
Nationwide Life Insurance Company
New York Life Insurance Company
Northwestern Mutual Investment Services, LLC
Northwestern Mutual Life Insurance Company
Northwestern Mutual Wealth Management Company
Pacific Life & Annuity Company
Pacific Life Insurance Company
Security Benefit Corporation
Security Benefit Group, Inc.
Security Benefit Life Insurance Company/Guggenheim Partners
Security Investors, LLC
Security of Denver Life Insurance Company/Voya
Transamerica Life Insurance Company
Voya Financial Advisors
Voya/Reliastar Life Insurance Company
World Financial Group Insurance Agency, Inc.

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