Shub Law is investigating life insurers that charge unauthorized monthly payments and deplete the value of customer’s policies. With such a huge monetary investment for our livelihood, we can’t allow large companies to cheat us out of our hard-working dollars.
HOW LIFE INSURANCE POLICIES WORK
Life insurance policies exist to protect ourselves and our loved ones. Different insurance companies offer different benefits and charge different rates based on those benefits, as well as other factors. The rates that insurers charge depend most commonly on age, sex, premium class, and net risk. Your policy will state explicitly what the factors are that the insurer is considering when it comes to monthly rates.
Unfortunately, some insurance companies will charge monthly rates based on other, unspecified factors, which increases the monthly payment. For most policies, when the monthly payment is higher, that means that there is less interest being applied to the beneficiary sum, shorting the customer in the long run.
DECEPTIVE PRACTICES OF INSURERS LIKE STATE FARM AND GLENWORTH
When insurers charge higher rates for factors that they do not specifically state to their customers, they are committing deceptive practices. Recently, State Farm came under fire for determining monthly payments not on the factors it specified, like “age, sex, applicable rate class, and projected changes in mortality,” but also on factors such as “expense experience, persistency, taxes, profit, investment earnings, and capital and reserve requirements,” which the company allegedly did not explicitly communicate to its policyholders.
Other insurers are even less transparent in the factors they consider when conducting monthly payments. In 2019, Glenworth announced it would increase the monthly risk rates, which allegedly resulted in a 40%-140% increase in premiums. In that instance, Glenworth violated its own terms when stating that its rates would only consider “future investment earnings, mortality, persistency, expenses and taxes.”
We’re trusting insurance companies to take care of us and our money. We shouldn’t have to worry about them deceiving us just for their own gain!
CONTACT US TODAY!
Shub Law is a national leader in representing individuals against consumer fraud. If you or someone you know feels that your life insurer charged you for unauthorized factors, contact us via email at firstname.lastname@example.org or give us a call at 856-772-7200. Shub Law Firm is a national leader in representing consumers, just like you, against some of the nation’s largest companies. Our experienced class action attorneys are here to help you get justice. Contact us now! All consultations are free of charge.