A large number of life insurance policyholders are being told they must pay increased premiums or they will lose their policy. Some policyholders who bought their policy decades ago are facing unexpected premium increases of 100 percent or more (and in some cases up to 1,000 percent) and are faced with the dilemma of either paying this unanticipated increase or being forced to allow their policy to lapse. Attorneys at Methvin, Terrell, Yancey, Stephens & Miller, P.C. have unmasked improper and sometimes fraudulent practices as the cause of many of these steep premium increases.
These life insurance companies often reason that the cost of insurance has gone up and accordingly the premiums must match these costs. Premium increases, however, must follow the provisions and obligations contained in the life insurance policy. Typically, premium increases must be based on future mortality expectations and/or other permissible factors specifically identified in the policy. Yet with continuing improvement of mortality rates, future mortality expectations should not serve as a legitimate basis for increased premiums.
Unexpected increases are typically due to the life insurance company’s poor management of its investments and as a result the company attempts to recover its own losses through increasing premiums. Even worse, companies are also shortchanging the policy value by taking the returns on the company’s investment as profit at the expense of its policyholders. The result in either case has caused premiums to skyrocket while leaving policyholders at a loss.
The attorneys at Methvin, Terrell, Yancey, Stephens & Miller, P.C. are currently investigating claims of those who have had their premiums wrongfully increased by their insurance company. If you have experienced increases in your life insurance premiums, you may have a legal claim and be entitled to compensation. Contact us today for a free legal consultation and evaluation.