IUL Lawsuits in Myrtle Beach

Have you purchased an IUL policy based on the recommendations and representations of your financial advisor or a financial services firm’s or insurance company’s representative? If you’ve discovered that an IUL does not provide the financial returns or benefits you expected and involves costs and complexities that an advisor or representative failed to disclose to you, you may have a legal claim to compensation and accountability from a financial advisor, financial services firm, or insurance company. However, an indexed universal life lawsuit can involve complex factual and legal issues. A knowledgeable attorney can guide you through these issues and advocate for your right to financial recovery.

Contact RP Legal LLC today for an initial case evaluation with an IUL lawsuit lawyer in Myrtle Beach to discuss your rights to pursue relief through a legal claim or by joining an IUL class action. Our South Carolina IUL attorneys have over a century of combined legal experience advocating on behalf of clients who have suffered losses due to the misconduct or negligence of financial advisors. We have a proven track record of hundreds of cases, including a 97 percent success rate and millions of dollars in compensation recovered through settlements and verdicts.

Understanding IULs

Indexed universal life (IUL) insurance is a type of universal life insurance. Universal life insurance contains two components: a cash value element and permanent insurance. With an IUL, the cash value component earns interest by tracking one or more stock market indexes chosen by the insurance company that issues the policy. The interest earned by the cash value component can increase the policy’s value over time. Some IULs split the cash value component into an index account and a fixed-rate account. The interest earned by the index-tracking cash value component fluctuates with market performance; however, many IULs offer an interest rate guarantee that purports to limit a policyholder’s downside risk. However, interest rate guarantees usually come with a rate cap that limits the interest that a policyholder can earn.

The premiums paid for an IUL first go towards paying for the insurance component, then to cover administrative or management fees, and the remainder of the premium goes to the cash value component. When an IUL has both index and fixed-rate accounts, policyholders can determine how much of their remaining premiums to allocate to each account.

As the value of an IUL policy increases, a policyholder may choose to temporarily reduce or skip their premium payments. IULs also allow policyholders to borrow money against the policy’s value. However, skipping premiums or borrowing against the policy can reduce the death benefit paid after the insured’s death or decrease the policy’s value to the point where it lapses without repayment or premium contributions from the policyholder.

Common Kinds of Misconduct Involving IUL Sales

Financial and insurance firms in Myrtle Beach, as well as individual advisors, may engage in various kinds of misconduct that leads to the sale of IUL policies to individuals whose financial needs and goals do not align with the features or benefits of IULs. Misconduct can take the form of:

  • Breaches of fiduciary duties, such as conflicts of interest, self-dealing, or disloyalty
  • Negligence in assessing the suitability of IULs for a specific client
  • Misrepresentation of the features, benefits, or risks of an IUL or the potential gains that an IUL can generate
  • Failure to supervise the firm’s representatives

Common ways that advisors or firms may engage in misconduct when selling IULs include:

  • Deceptive Marketing Practices – Sellers may use misleading or deceptive advertising that portrays IULs as an investment plan or glosses over the disadvantages of IULs.
  • Excessive Fees – IULs that charge heavy administrative fees can mitigate or negate the downside protection of an interest rate guarantee, leading to policyholders effectively sustaining financial losses.
  • Recommending IULs to Older Customers – Older customers may soon need an income stream, but withdrawing funds that include investment gains before the policy’s maturity may lead to unexpected tax liabilities.
  • Misleading Illustrations That Overestimate Returns – Marketing for IULs may cite best-case or unrealistic returns.
  • Multi-Level Marketing Sales Strategies – Some firms utilize MLM business strategies to induce increased sales of IUL policies.
  • Fraudulent Practices or Pyramid Schemes – Marketing strategies can cross the line into fraudulent practices, such as pyramid schemes.

Firms may use misleading or false slogans or marketing phrases when selling IULs that exaggerate or falsely represent aspects of these products. Some of the most common misleading phrases used in IUL marketing include:

  • “Tax-Free Retirement Income” – Marketing for IULs may attempt to convince prospective customers that these products function similarly to other retirement products, such as Roth IRAs or pensions. However, advertising materials may overlook risks such as loan defaults, lapses in policy value, or increasing premiums.
  • “Be Your Own Bank” – Sellers may tout the ability for policyholders to borrow against IULs but fail to address the fact that borrowing can reduce the death benefit or cause the policy to lapse if policyholders do not repay their loans. Such marketing may oversimplify banking concepts by not disclosing the costs of borrowing.
  • “No Downside Market Risk” – Advertising for IULs may heavily lean on the interest rate guarantee feature, but it does not address how cap rates and administrative fees charged by insurers can limit returns or mitigate the protections of interest rate guarantees. Customers may not realize the potential for losses through the charges they must pay on their policy.
  • “Indexed Growth with No Loss” – Marketing may make it seem like putting wealth into an IUL allows for direct market participation; however, such advertising slogans hide the fact that the cash value component merely tracks market indexes without investing in securities.
  • “Outperform Your 401(k)” – Sellers may promote IULs as superior to traditional tax-qualified retirement plans. However, such plans have advantages over IULs, including the option for employer matching and the ability to gain from market performance through direct participation. Advertising may falsely suggest that IULs offer better tax advantages or less volatility than traditional retirement investment products.
  • “Tax Shelter for High-Income Earners” – Some sellers may target high-net-worth individuals with promises of tax loopholes. However, financial products that claim to avoid taxes can come under regulatory scrutiny.
  • “Life Insurance with Living Benefits” – Sellers may characterize IULs as a dual-purpose product that provides life insurance with an investment opportunity without disclosing that the benefits of IULs can depend on underwriting requirements or expensive riders.

Insurance and Financial Firms Involved in IUL Sales

Various insurance companies and financial advisory firms have developed sizeable IUL businesses. Some of the insurers that have aggressively marketed IULs include:

  • Pacific Life (Targets high-net-worth and premium clients)
  • Allianz (One of the top IUL sellers that frequently participates in marketing that uses complex illustrations and “tax-free retirement” claims)
  • National Life Group (A primary IUL supplier for various firms, such as World Financial Group, PHP Agency, and Five Rings Financial)
  • Minnesota Life (Securian) (Offers IULs under several brands that target customers seeking high-income retirement products)
  • Fidelity and Guaranty
  • Lincoln Financial
  • Transamerica (A key partner for World Financial Group)
  • Mutual of Omaha (Offers IULs through firms such as Family First Life and Symmetry Financial Group)

Insurers often collaborate with financial advisory services firms to sell IULs to these firms’ clients. Examples of financial firms that push IULs to current and prospective customers include:

  • World Financial Group
  • PHP Agency
  • Family First Life
  • Symmetry Financial Group
  • Integrity Marketing Group
  • LifePro Financial Services
  • Equis Financial
  • Five Rings Financial

IULs in Myrtle Beach

Residents in Myrtle Beach who have lost money or financial opportunities due to an IUL scam may pursue legal action against liable parties, such as financial advisors, advisory services firms, or insurance companies. Myrtle Beach residents may file a lawsuit in the Horry County Courthouse, located in the South Carolina state court system, which serves the 15th Judicial District, or in federal court in Florence.

How Can an IUL Lawsuit Attorney Help?

After sustaining financial losses due to an IUL product that you did not fully understand and that did not meet your financial needs or goals due to an advisor’s negligence or misconduct, you may have the right to seek monetary relief. An IUL lawsuit lawyer from RP Legal LLC can help you pursue financial recovery and accountability for a financial advisor or investment firm’s negligence or misconduct by:

  • Sitting down with you to discuss your case and learn more about your advisor’s or insurer’s negligence or misconduct that led you to purchase an unsuitable IUL product
  • Documenting your losses to ensure we pursue maximum financial recovery for you
  • Identifying potentially liable parties, such as advisors, financial services firms, and insurers
  • Vigorously pursuing your claims to recover the compensation and justice you deserve, whether through a settlement or by taking your case to court, if necessary

Contact Our Firm Today for Guidance

When you’ve lost money in an IUL that did not suit your financial needs and objectives, you may have a claim against an advisor or firm for their negligence or misconduct. Call RP Legal LLC at (803) 805-7546 today for a confidential consultation with an IUL lawsuit attorney in Myrtle Beach to learn more about your legal options for seeking financial relief for losses you incurred due to an unsuitable IUL policy that an advisor or salesperson recommended to you due to their negligence or misconduct.

Last Updated: 08-06-2025

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Recoveries for Victims of IUL and FIP Investment Fraud
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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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