IUL Lawsuits in Florida

Have you purchased an indexed universal life insurance product in Florida and lost money due to confusing conditions of hidden fees? If so, contact the insurance fraud attorneys from RP Legal LLC. Insurance companies are legally obligated to make honest and factual representations when promoting their insurance products. Unfortunately, these entities are often incentivized to stretch the truth or lie to sell insurance products. They might make false claims about fee structures or greatly exaggerate the expected returns while minimizing costs.

If you believe your insurance broker or agent lied about or misrepresented your indexed universal life insurance policy, you may be able to file an indexed universal life lawsuit to reclaim the cost of premiums paid and other financial losses. The IUL lawsuit attorneys at RP Legal LLC can help hold insurance brokers and agents accountable for their wrongdoing and fight for the benefits you are owed. You can trust our firm to provide sound legal representation and unceasing client advocacy.

Contact our offices online or call (803) 805-7546 today to speak to an indexed universal life insurance lawsuit attorney in Florida.

What Is an Indexed Universal Life Insurance Policy (IUL)?

Indexed universal life insurance (IUL) is a type of permanent life insurance that contains two components:

  • A death benefit that pays when you die
  • A cash value component that is tied to a stock or bond index

Unlike a term policy, IUL policies are permanent, so they last for as long as you pay the premiums. If you stop paying, the policy can lapse, and you can lose the premiums you paid into it. With an IUL, you can adjust the premium and death benefit to fit your situation.

The defining feature of an IUL is that the cash value component is tied to a specific index, most often the S&P 500. This functions differently than the cash value portion of a whole life insurance policy, which receives a guaranteed return from the insurance company. The insurance company takes the premiums and invests them in the selected index, after taking a substantial fee for itself.

Although the policy’s performance depends on a market index, IUL policies usually have a 0% floor, which means you don’t lose money if the index takes a dive. However, many firms charge exorbitant fees that can eat into any gains you make. Even if the policy makes no money because of poor index performance, the insurance company and agents still get paid from the fees they take. Applicable fees might include:

  • Agent commissions
  • Charges for internal costs
  • Cost to maintain life insurance
  • Miscellaneous expense charges

These hidden fees can drastically reduce the value of your policy, and if you don’t watch carefully, they could eat up all the cash value. If you’re using the cash value to pay premiums, your policy could lapse due to non-payment if the fees use up all the cash value.

Signs of IUL Misconduct

IULs are complex insurance arrangements, and it can be difficult to understand all their terms and conditions. What’s worse, agents and brokers often have an incentive to hide or gloss over the downside when promoting products. Agents often get a nice commission from selling policies, even if they are not ideal for the customer.

Many individuals buy a policy and are subject to numerous fees, which causes them to lose money. Insurance companies may also withhold vital information from policyholders, such as policy funding mechanisms, interest rates, and variable fees. Below are some common types of IUL misconduct that could justify filing a lawsuit.

  • Breaches of fiduciary duty
  • Broker negligence in hiring or training agents
  • Failing to supervise registered representatives
  • Misrepresentations about policy details
  • Recommending IULs to older customers who won’t live long enough to benefit
  • Deceptive marketing practices
  • Charging excessive/unexpected fees
  • Misrepresenting potential returns
  • Illegal funding mechanisms (e.g., Ponzi schemes)
  • MLM sales and recruitment tactics (e.g., commissions from recruitment)

For example, insurance companies might not disclose or notify you of all fees. Agents and brokers may be vague about the exact percentages you pay and may charge higher fees near the beginning of the policy. Similarly, agents and brokers might only provide extremely bullish projections that only reflect best-case scenarios.

The Risks of IULs

One of the most egregious falsehoods is when insurance companies market IULs as “no-risk” or “risk-free.” Every financial product has some risk, including IULs. The main risk of IULs is exposure to the market index they are tied to. When the market does well, you can make high returns. But when the market does poorly, no interest will be added to your cash value. All the while, the firm charges increasingly higher fees that cut into your policy value.

You can lose money simply from the aggressive fees alone. If the premiums get too high and you can no longer afford the policy, you could end up forfeiting the cash value component or the death benefit, but not before the insurance company and agent get paid again.

Firms and Financial Organizations That Sell IULs

Many large firms and insurance organizations aggressively push IULs as a significant portion of their portfolio. And many of these firms have been subject to class action lawsuits for selling fraudulent IULs or using false or deceptive marketing practices.

  • Pacific Life
  • Allianz
  • National Life Group
  • Minnesota Life
  • Fidelity
  • Guaranty
  • Lincoln Financial
  • Transamerica
  • Mutual of Omaha
  • Penn Mutual
  • Protective
  • Prudential
  • Symetra
  • MetLife
  • Equitable AXA
  • Ameritas
  • World Financial Group
  • PHP Agency

IUL Lawsuits in Florida

A recent case in Florida involves a 94-year-old policyholder suing their insurance broker for premium hikes on her universal life insurance plan. The complaint alleges that Voya Financial Advisors and other entities misled her about the financial product and charged exorbitant premiums, causing the policy to lapse when she couldn’t pay. In losing the policy, the defendant effectively wasted the entirety of their annual premium payments. In the suit, the plaintiff is seeking compensation for actual damages and punitive damages for violations of fiduciary duties.

Although this case was about a universal life policy, the same types of issues can occur in an IUL if the insurer charges exorbitant or increasing fees and the policyholder doesn’t keep careful track of what’s happening.

Florida IUL Lawsuit FAQ

If you have any more specific questions about IUL lawsuits in Florida, contact RP Legal LLC today to speak to one of our insurance fraud attorneys.

Who Can I Sue in an IUL Lawsuit?

The two parties you can generally sue in an IUL lawsuit are the insurance company furnishing the policy or the agent who sold you the policy. Both insurance companies and their representatives must be factual and honest with marketing. Insurance companies may be liable for collecting bogus fees, or the agent can be liable for lying or using misrepresentations to sell you the policy. You could potentially file a lawsuit against any party that was involved in lying or misrepresenting facts about the policy, fees, or expected returns.

Why are IUL Lawsuits So Common?

IULs used to be relatively rare and issued only by a few institutions. However, they have exploded in popularity recently as many firms realized the money-making potential. IULs can be extremely lucrative for insurance companies and brokers, so they have a vested interest in selling. IULs are complex insurance agreements, and policyholders might not understand the full implications of the fees and funding structures. Unfortunately, these factors have resulted in numerous fraudulent IUL products. Many people have organized IUL class action lawsuits against big firms to hold them accountable for deceptive marketing and false promises.

How Are IULs Regulated?

Even though brokers might market them as such, IULs are not investment products, like stocks or bonds. As such, they are not subject to oversight by the US Securities and Exchange Commission (SEC). However, individual agents and brokers who sell IUL products must be licensed and undergo training. As a general rule, the insurance brokers selling you the policy have a duty to ensure that it’s suitable for your age, financial situation, financial goals, and risk tolerance.

How an Attorney from RP Legal LLC Can Help You Recover Your IUL Losses

RP Legal LLC is the nation’s leading firm for IUL litigation. We have litigated thousands of IUL lawsuits across the whole country and recovered hundreds of millions for our clients. We know how to push back against dishonest insurance companies and brokers to secure the money you lost. Our attorneys collectively share over 100 years of legal experience and have managed cases involving some of the largest insurance companies in the country.

Whether we are investigating investment fraud or broker negligence, we promise to do everything in our power to hold bad actors accountable. We can assess your policy and determine whether the insurer has violated state insurance laws or the terms of its own contract. We are meticulous in our investigations, which explains our established track record of successful lawsuits and case verdicts.

Contact Our Offices Today for a Case Consultation

If you believe that your Florida broker or insurance agent lied about how your IUL functions or its potential value, it’s imperative to secure legal counsel promptly. The longer you wait to take action, the harder it will be to prove your case for repayment. Insurance companies have expensive attorneys to protect them, but RP Legal LLC can fight on your behalf.

Contact our offices online or call (803) 805-7546 today for a free and confidential case consultation with an IUL lawsuit attorney in Florida. We can assess your case and discuss options to recover financial compensation.

Last Updated: 08-06-2025

Case Results Our Record Speaks For Itself
Recoveries for Victims of IUL and FIP Investment Fraud
$10,000,000

RP Legal LLC has recovered over tens of millions of dollars for victims in these cases.
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Jury Verdict for Failed IUL Retirement Strategy
$1,500,000

A jury awarded $1,526,156.54 for our client, ruling against Pacific Life Insurance Company.

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Robert Rikard, founding attorney of RP Legal LLC, was recently featured in a nationally recognized insurance publication.

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Any result the lawyer or law firm may have achieved on behalf of clients in other matters does not necessarily indicate similar results can be obtained for other clients.

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