The purchase of whole life insurance is a popular investment option. State Farm Life Insurance Co. is one of the largest insurers offering consumers the chance to buy a whole life insurance policy with a death benefit and an investment component. For those interested in purchasing coverage, State Farm offers options for payments made over a limited period of 10 to 20 years, as well as offering other types of payment structures for those who want coverage for their whole lives.
Unfortunately, while consumers may have a choice over how to structure premium payments, they don’t have a choice when it comes to paying the unexpected fees and costs they could find themselves faced with after buying a whole life policy from an insurance provider.
If you buy a policy and find that the fees are preventing or limiting financial gains, Santa Clara County securities fraud attorneys can provide help. We represent consumers who believe they have suffered loss because they were misled by bad investment marketing or because they were given inappropriate investment advice. While seniors are especially vulnerable to marketing of whole life policies because they are often looking for safe investment options, we help anyone who has been harmed by dishonest insurance industry tactics.
Fees and Costs in Life Insurance Policies
State Farm promises that: “Whole life insurance helps your family prepare for the unexpected. The death benefit can help replace a family’s loss of income… [and] over time, whole life policies build cash value that grows tax-deferred, and can be accessed during your lifetime.” The policies, therefore, are marketed to consumers by touting both their death benefit and advertising their investment component.
Unfortunately, many people who purchase whole life policies from an insurer find that the coverage isn’t really a good investment at all. This is because fees are high and can eat away at an investor’s returns and applicable restrictions can make it difficult or impossible to use the cash value life insurance as a source of funds when you need cash.
Fees for whole life policies run the gamut from withdrawal or liquidation fees to huge surrender fees if the policy is sold. The sooner a policy is surrendered, the higher the surrender fees; however, waiting to get out of a policy typically means more spending on other insurance expenditures.
Getting Help From Santa Clara Securities Fraud Lawyers
When you are sold an investment or given investment advice, you have the right to expect the advice will be reasonable and that the investment will eventually pay off. Unfortunately, with whole life fees and costs, it is possible you could end up seeing little or no return on your investment or you may even lose money.
You should not just let your losses go when an insurer or adviser misled you. Contact attorneys at the Evans Law Firm, Inc. who have experience in taking action and recouping lost money for investors. Your attorney can explain your rights and help you determine if you can pursue a case to get back what you lost so you will be back on the path towards financial security as soon as possible.
Source:
https://www.statefarm.com/insurance/life/whole-life
https://thefinancebuff.com/10000-lesson-on-variable-universal-life.html
https://www.nerdwallet.com/blog/insurance/find-best-whole-life-insurance/
