Pacific Life Universal Life Insurance

ATTORNEY NEWSLETTER

Pacific Life is a popular seller of annuities and life insurance policies to seniors and elders.  Pacific Life is also one of the several companies that sell Indexed Universal Life Insurance policies, currently a popular insurance policy on the market due to promised high returns based on the performance of a stock market index.  However, Indexed Universal Life Insurance policies may be rife with problems.

Indexed Universal Life insurance policies are long-term policies that only ends when the policyholder dies, thus racking up already high fees and costs that will only continue to increase the longer the policyholder lives.  While policyholders are given the option to pay off the fees and costs with accumulated interest, therein exists another problem: there needs to be enough accumulated interest.  Otherwise, policyholders will have to dip into their own funds (i.e., retirement) or third party sources to pay off the increasing high fees and costs.  Furthermore, most people cancel their Indexed Universal Life insurance policy long before the surrender date, which is a date typically too far off into the future, and thus incur high surrender fees.  In addition, the promised high returns may be false – insurance companies may be using outdated statistics to sell the Indexed Universal Life insurance policies.

At a glance, Indexed Universal Life insurance policies seem like a great policy.  However, it may be the exact opposite.  Carefully review and make sure you understand every detail of any Indexed Universal Life insurance policy before buying it.  You may find that Indexed Universal Life insurance policies may not be what you want.

If you have a Pacific Life Indexed Universal Life insurance policy and would like a free and confidential legal evaluation of it, contact Evans Law Firm, Inc. at 415-441-8669 or via email at info@evanslaw.com.