Transamerica is a giant in the insurance industry, and it is easily identifiable based on its pyramid-shaped building in San Francisco. Transamerica is a subsidiary of the international insurance giant Aegon. Since the company is a wholly-owned subsidiary, it is difficult to know how much money Transamerica makes, although you can rest assured that it is extremely profitable. Transamerica sells a variety of insurance products, including indexed universal life insurance policies. If you have lost money after purchasing a Transamerica IUL, you may be able to file a lawsuit. Call the attorneys at the Investor Loss Center today.
Transamerica Markets a Variety of IUL Products
Transamerica continuously introduces new products based on its perception of the Market’s needs. Many of these products are extremely complex, perhaps even too much so for the customers who purchase them. One of Transamerica’s new products is the Financial Choice IUL. This product is intended to provide tax-advantaged supplemental income while protecting the beneficiaries. If the policy is “properly funded,” the policyholder should have tax-free access to the cash value each, minimizing their tax obligations. Customers have access to numerous index options, both capped and uncapped.
You Pay Transamerica Hefty Fees for Their Products
The problem is that you may be paying quite a bit to “properly fund” your account. Not only are you paying the cost of insurance, but you are also paying quite a bit of fees to Transamerica and the representative who sold you the policy. Everyone seemingly gets a piece of the pie, and it comes out of your premiums.
Transamerica IUL fees include:
- Cost of insurance: You will pay a certain percentage in fees for the actual insurance coverage part of the policy, based on the amount of the death benefit and the insured’s health
- Index account monthly charge: Monthly fees are charged based on account value. These fees are how Transamerica really makes its money.
- Monthly policy fee: As if the index account monthly charge was not enough, Transamerica takes a flat fee of $10 to $12 each month.
- Per Unit Charge: Transamerica also asses a charge per thousand of the face amount of the Base Policy and Additional Insured Rider
If you can no longer afford the premiums or do not need the policy for other reasons, you will also be assessed a large surrender charge. You may be shocked to learn that the cash value of your policy that you can receive back when you surrender it is much smaller than you think.
Much of it has gone to pay Transamerica fees and pad their already high profits.
Transamerica Has Hiked Fees in the Past for Already Purchased Policies
Cost increases have been a large issue for Transamerica, both in the past and present. When you buy an IUL policy, you have no assurance that Transamerica will keep the expense charges constant. In fact, Transamerica was sued, and it paid $195 million to resolve a class action lawsuit that the company improperly increased monthly expenses for its universal life insurance policies. In some cases, Transamerica increased monthly fees on policies that were sold 25 or more years beforehand by as much as 38%.
One of the many charges that Transamerica hits you with is the monthly account charge.
Transamerica will charge you between .7% and 1% annually in monthly fees in addition to everything else you pay. The company has overcharged customers in the past, and it is not beneath raising fees as it sees fit. You may have purchased a policy with certain assumptions, only to find out that your profit profile changes because Transamerica wants more money.
You May Be Able to File a Lawsuit for Transamerica IUL Policy Losses
Many IUL policyholders have realized, long after they bought the policy and paid excessive front-loaded fees, that it really was not a good idea. The insurance company May disclose the fees, but they are often in small print, and you do not really know how much you are paying. In the meantime, that provided you with glitzy and glossy promotional materials that build in all sorts of optimistic forecasts for the performance of your account. You may not realize until it is too late that you have been sold a product that could benefit Transamerica far more than it helps you.
If you have lost money on an IUL due to misleading or deceptive sales practices, you may be able to file a lawsuit. Customers have frequently sued Transamerica in the past for their business practices, and they have been successful at times. You should contact an attorney today to learn more about your legal rights and whether you can file a lawsuit of your own. His lawsuit can be either an individual or class action case.
Contact a Transamerica IUL Lawsuit Attorney Today
The attorneys at the Investor Loss Center help clients who have been the victim of wrongful practices in the sale and transaction of financial products. We put pressure on companies like Transamerica through the lawsuit process, which could lead to a jury award or a settlement that allows you to get some of your money back. These companies only respond when they are either forced or ordered to do the right thing. You can speak with an attorney during a free initial consultation by calling us today at (803)-805-7546 or sending us a message through our website.