RP Legal LLC Is Investigating Life Insurance Sales Based on Misleading Retirement Promises
Across the country, insurance agents and marketers are promoting Indexed Universal Life (IUL) policies as so-called “private pensions” or encouraging consumers to “be your own banker.” These phrases are part of a coordinated sales strategy designed to present life insurance as a safe, tax-free alternative to traditional retirement planning.
In many cases, clients are told they can fund an IUL for a few years and then take tax-free income for life. They are shown charts and illustrations that appear to guarantee high returns with no downside risk. What is often left out are the hidden costs, policy risks, and long-term loan traps that lead to financial loss.
RP Legal LLC is actively investigating these misleading sales practices and representing individuals who were harmed by this marketing strategy.
What “Private Pension” and “Be Your Own Banker” Really Mean
Agents using these terms are usually selling a version of the following concept:
- The IUL policy will replace your 401(k), IRA, or pension plan
- You will fund the policy for a few years, then borrow against it tax-free
- The money grows without taxes and provides income for life
- You control the “bank” and no longer need to rely on financial institutions
- You can pass the policy to your heirs completely tax-free
These claims are presented as facts. But in reality, IUL policies are not guaranteed, do not function like a pension, and come with significant risks and costs that are often glossed over or omitted entirely.
Why These Policies Often Collapse
Clients who bought IULs under the belief that they were creating a personal pension or banking system are now discovering:
- Their policy values are much lower than expected
- Interest on policy loans is growing faster than the credited interest
- Cap rates have dropped, reducing growth potential
- Cost of insurance charges are increasing every year
- They are now being asked to make unexpected out-of-pocket payments
- The policy is in danger of lapsing, which can trigger taxable events and total loss of benefits
What was sold as a simple retirement plan is now a failing, high-risk insurance product.
Who Is Behind These Sales
RP Legal LLC is investigating:
- Independent agents and agencies using social media, seminars, and cold calls to promote “private pension” and “bank on yourself” language
- Financial influencers selling IUL strategies online without appropriate licenses or disclosures
- National insurance carriers whose products are used in these sales, including Pacific Life, Allianz, Nationwide, Lincoln Financial, and others
- Independent Marketing Organizations (IMOs) that provide scripts, illustrations, and training programs built around these phrases
This marketing is often part of a larger pattern of deception, targeting professionals, small business owners, and retirees looking for alternatives to traditional retirement accounts.
We Help Clients Recover from These Strategies
RP Legal LLC has helped hundreds of clients across the country recover from IUL strategies that were misrepresented at the point of sale. Our legal team has deep experience analyzing illustrations, uncovering policy failures, and identifying misconduct by insurance agents and marketing firms.
If you were sold an IUL policy based on promises of becoming your own banker or creating a private pension, you may have been misled about how the policy actually works.
We offer a free and confidential review of your policy documents and funding plan. Contact RP Legal LLC today to find out if you have a claim.