Premium Financed IUL Lawsuits

At RP Legal LLC, we are the nation’s leading law firm handling premium financed Indexed Universal Life (IUL) litigation. These complex financial products are often sold to high-net-worth individuals, professionals, and business owners as “free insurance” or a “no out-of-pocket cost” strategy, but the risks are often hidden beneath layers of sales hype and unrealistic illustrations.

Understanding Premium Financed IUL

In a premium financed IUL, the buyer takes out a loan from a bank or private lender to cover the policy’s hefty premiums. The promise is that the cash value will grow fast enough to repay the loan, provide tax-free retirement income, and deliver a large death benefit. Unfortunately, these projections frequently collapse under the weight of compound loan interest, rising costs of insurance, and poor policy performance.

By the time most clients discover the policy is failing, it is too late. The accumulated loan may exceed $1 million to $5 million, collateral demands increase, and the lender may begin foreclosure proceedings on pledged assets. In some cases, the client is left with no cash value, no exit strategy, and a massive liability.

Our IUL Litigation Experience

We have reviewed and litigated hundreds of IUL cases, including those involving:

• Breach of Fiduciary Duty
• Broker Negligence
• Deceptive Marketing Practices
• Elderly Financial Abuse Lawyer
• Failure to Supervise
• IUL Hidden Fees
• IULs Sold As Defined Benefit Plan
• Misleading IUL Illustrations
• Misrepresentation

At RP Legal LLC, our team brings unmatched experience and precision to investigating failed premium financed IUL strategies. We have built a national reputation as the go-to litigation firm for complex life insurance products that were marketed as tax-free retirement plans, free insurance, or wealth transfer solutions. We know exactly how these policies were sold, how they were structured behind the scenes, and how they go off track.

Indexed Universal Life Insurance Investigation Process

Our legal team works closely with clients, CPAs, estate planners, financial advisors, and insurance experts to conduct a full forensic review of every aspect of the transaction, including:

• The original policy illustrations and assumptions used in the sales pitch
• The lender agreement outlining interest accrual, collateral requirements, and call provisions
• The annual policy statements showing rising cost of insurance and declining cash value
• The structured sales presentations, decks, and marketing materials used to promote the strategy
• The communication records between the agent, advisor, lender, and client
• The trust documents or ILITs used to shield the policy and disguise liability exposure
• Any use of Variable Rate Demand Obligations (VRDOs) or other complex premium financing arrangements

We identify red flags such as inflated return assumptions, improper risk disclosures, conflicts of interest, agent misrepresentations, and illegal compensation structures. We understand how lenders, agents, and insurance carriers all profited—while our clients were left with exploding loans, failed policies, and zero cash value.

If your premium financed IUL policy is underperforming, your lender is demanding more collateral, or you are at risk of policy lapse or forced foreclosure, you may have a strong claim for rescission, damages, or financial recovery.

RP Legal LLC has helped recover millions of dollars for individuals and families misled by these flawed financial products. Contact us for a confidential policy review.

Financial and Insurance Firms We Target

Several large insurance firms have been implicated in class action IUL lawsuits. Below is a list of some of the brokerages and firms we might investigate:

Contact RP Legal LLC

Contact RP Legal LLC today for a legal review of your IUL policy, financing documents, and original sales materials. We represent clients nationwide and only get paid if we recover compensation for you. Contact us today or give us a call: (803) 805-7546