IUL Lawsuits in Ohio

Have you purchased an indexed universal life insurance policy and believe your broker lied or misrepresented key features of the policy? If so, contact the attorneys from RP Legal LLC. Insurance agencies often promote indexed universal life insurance as a risk-free source of retirement income and wealth generation. However, these policies are incredibly complex and full of obtuse rules and conditions.

IULs might make sense for a handful of investors, but they usually come with hidden fees and charges. Many insurance agencies neglect to discuss these costs upfront. The result is that customers get their monthly statement and are surprised that they don’t see the promised gains. The exorbitant fees can drain the policy’s value and jeopardize policyholders’ financial security.

If you have lost money from an indexed universal life insurance policy and feel your broker misled you, RP Legal LLC is here to assist. We have extensive experience managing lawsuits against insurance companies for false or misleading marketing and fraudulent practices. We can assess your policy to identify wrongdoing and hold insurance brokers and agents accountable for their wrongdoing.

Contact our offices online or call (803) 805-7546 today for a case consultation with an IUL lawsuit attorney in Ohio.

What Is an IUL and How Does It Work?

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

  • A death benefit that pays beneficiaries when you die
  • A cash value portion that accrues interest over time

Since an IUL is a permanent policy, it doesn’t expire after a term and lasts as long as you make premium payments. You can also adjust your monthly premium and death benefit to fit your needs.

The defining feature of IULs is how the cash value component gains interest. The cash value is put into options that track an index, typically a stock or bond index like the S&P 500. Since the cash value depends on market performance, it can rise or fall as the market changes. This structure means that IULs are more volatile and risky than other types of life insurance. However, they can grow significantly in value if the chosen index does well.

Are IULs Investment Products?

Despite the pegged index, IULs are not investment products. Insurance laws prevent brokers from directly investing insurance premiums, so the money gets put into other options that track investment indexes. Even though brokerages may call them investment vehicles, you are not directly purchasing exposure to the stock market.

This is more than just a technical point – IULs are not investments, so they are not subject to regulations from the U.S. Securities and Exchange Commission (SEC). As such, brokerages can do all kinds of things with IUL funding structures and fees that you cannot do with securities. IULs are still subject to state insurance regulations, but their complex structure makes it hard to determine whether misconduct has occurred.

Insurance Brokers and Agents Make Money Off IULs

 IULs used to be a relatively rare financial product that only a handful of firms offered. However, IULs have become extremely popular in recent years, but not because they are smart financial products. Insurance brokers and agents make a significant amount of money selling IUL policies. IULs charge several fees, and insurance companies get a cut of every premium you pay. In some firms, agents can receive commissions as high as 100 percent of the policyholder’s first-year premiums.

These financial incentives have given rise to numerous IUL products and services. You can find countless videos and social media posts of people promising fast riches and tax-free retirement income with an IUL policy. Insurance companies don’t challenge these perceptions because they help them make money.

Every time you pay a premium on an IUL, the company takes a chunk out to cover fees. Over time, these charges can cut into the value of the policy. Applicable fees might include:

  • Premium load fees to pay for life insurance coverage
  • Mortality charges to compensate insurers for risk
  • Commission fees for agents and brokerages
  • Fees to cover rising insurance costs
  • Management fees and expenses
  • Other miscellaneous fees

Many policyholders might not even know their broker is charging these fees until they receive a bill that can range from thousands to tens of thousands of dollars. If the policyholder can no longer pay premiums, they could forfeit the policy and lose the entire value of the death benefit and accrued cash value.

Common Types of Insurance Misconduct in Ohio

Insurance brokers and agents have a duty to act in their clients’ best interest and make honest representations. Below are some common types of insurance misconduct that could be grounds for a lawsuit.

Broker Negligence

Brokers are required to properly train their agents and ensure they obey all insurance rules and regulations when selling products. If a broker hires an unqualified agent who makes false statements, the brokerage can be liable for policyholder losses due to misrepresentations. Similarly, brokers can be liable if they breach their fiduciary duty and irresponsibly manage policies.

Recommending IULs for Older Customers

Brokers and agents might also push IUL products on older customers. These customers may not live long enough to reap the benefits, and claim they were misled when they bought the policy.

Deceptive Marketing Practices

Brokers and agents often rely on misleading marketing practices, such as understating or not disclosing all fees. They may also use misleading phrases to claim that IULs carry no risk or can provide a risk-free source of passive income.

Overestimating Returns

Another common practice is to greatly exaggerate potential returns or use fake formulas to create earnings projections. These projections might not account for fees, market volatility, and rising insurance costs.

Fraudulent Practices

Fraudulent practices in the IUL industry can include illegal funding mechanisms or violating the terms of the insurance contract. For example, insurance companies might charge additional fees despite the contract explicitly limiting additional fees.

MLM Sales and Recruitment Tactics

Many firms that sell IULs rely on MLM-like recruitment and sales tactics. These agents get a commission when they sell policies, so they have a vested interest in recruiting as many people as possible.

Popular Firms That Sell IULs in Ohio

Many large firms have pivoted to selling IULs, and some make it a cornerstone of their product portfolio. If you have purchased an IUL from any of the following organizations or firms and lost money, give us a call to discuss legal options for compensation.

  • Pacific Life
  • Allianz
  • National Life Group
  • Minnesota Life (Securian)
  • Fidelity and Guaranty
  • Lincoln Financial
  • Transamerica
  • Mutual of Omaha
  • Penn Mutual
  • Protective
  • Prudential
  • MetLife
  • Ameritas
  • World Financial Group
  • PHP Agency
  • Symmetry Financial Group
  • LifePro Financial Services
  • Five Rings Financial

Compensation I Can Recover in an IUL Lawsuit

Through an IUL lawsuit, you may be able to recover financial compensation for the following losses:

  • The cost of premiums paid
  • The lost cash value of the policy
  • Lost money from illicit fees and charges
  • Emotional distress from financial losses
  • Punitive damages to deter future firm wrongdoing

Our goal is to recover as much compensation as possible from bad-faith insurers. To that end, we can approach your claim from every angle and identify all possible litigants.

IUL Lawsuits in Ohio

A plaintiff in Oregon recently filed a lawsuit against Ohio-based financial firms The Gottlieb Organization and Management Solutions LLC based on allegations of fraudulent insurance practices. The complaint alleges that the defendant breached their fiduciary duty and misrepresented the details of a premium-financed IUL. Further, the firm failed to make the required premium payments, draining the cash value portion and causing the lending institution to terminate the policy.

How Can an IUL Lawsuit Attorney Help Me?

 An IUL lawsuit attorney from RP Legal LLC can investigate your case to identify illegal or negligent insurance practices, such as:

  • Not performing or incorrectly performing a suitability analysis
  • Not disclosing all fees
  • Making false or misleading statements regarding IUL performance
  • Failing to notify customers about policy changes or fee hikes
  • Refusing to provide policy information when requested
  • Using illegal funding mechanisms or structures

The list of potential misconduct is long, but we are experienced and meticulous investigators. We are the premier law firm for IUL litigation in the country and have more experience with IUL cases nationwide than any firm. We have recovered hundreds of millions of dollars for thousands of clients and will stand in support of victims of IUL policies gone wrong.

Contact RP Legal LLC Today to Speak to an IUL Attorney

 It can be difficult to prove that your broker or agent misled you into buying a bad IUL, so it’s important to work with accomplished legal counsel. RP Legal LLC dedicates itself to fighting for victims of insurance fraud and will work tirelessly to help you recover your losses. Whether your broker misled you about returns or engaged in illegal insurance practices, we can investigate and pursue financial compensation to the fullest extent of the law. We have managed hundreds of insurance lawsuits across the country and can provide effective representation to balance the scales of justice.

Contact our offices online or call (803) 805-7546 today for a case consultation with an Ohio IUL lawsuit attorney.

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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