ING, Voya, Transamerica, and Others Expected to Raise Rates
A new year is an opportunity to make changes. Some of us resolve to eat better, lose bad habits, or improve as a person. In contrast, it seems that some major life insurance companies have resolved to increase their revenue by raising rates for their customers. Since the Federal Reserve has decided to start charging minimal interest on its loans again, some insurance companies feel that they need to make up the difference by taking more money from their clients, including many elderly customers who may not have many options for life insurance.
However, it seems that it might be an uphill battle for them to do so. Life insurance is a tightly regulated industry, and in many jurisdictions there will be severe restrictions on their ability to raise the Cost of Insurance. The wording of individual contracts can also vary, and some policies may prevent companies from raising rates as they intend. Older policies from companies like Transamerica, Voya, and ING may preclude the possibility of raising rates.
These potential rate increases will also include the option of reducing the death benefit in order to keep the same premium, or to surrender the policy entirely. Unfortunately, many insurance companies have already penalties and fees that make these options less inviting. In addition to paying for a broker’s commissions, liquidity charges when accessing funds, and myriad other charges, customers may also receive a lower surrender value than they expected.
Major sellers of Annuities and Life Insurance Include:
- Transamerica Life Insurance Company
- John Hancock Life Insurance Company
- Prudential Life Insurance Company
- Metlife Investors USA Insurance Company
- Genworth Life Insurance Company
- ING USA Annuity and Life Insurance Company/Voya Financial
- Lincoln Benefit Life Company
- Metropolitan Life Insurance Company
- Unum Life Insurance Company of America
- Reliastar Life Insurance Company
If you feel that you may have been the victim of an improperly sold or administered life insurance policy, or that you have received an unwarranted increase in cost of insurance, contact the Evans Law Firm at (415) 441-8669, or by email at info@evanslaw.com. Our practice areas include insurance, annuity, and healthcare fraud, qui tam, whistleblower, and banking fraud cases, and financial and physical elder abuse.
