Migliaccio & Rathod LLP is investigating whether Pacific Life indexed universal life policies were used in premium-finance arrangements marketed as low-cost or self-funding strategies that failed when interest rates increased.
Reported Issues
Consumers report:
- Purchasing large indexed universal life policies through premium financing.
- Being told policy growth could exceed loan interest costs.
- Being told the strategy required little or no out-of-pocket premium.
- Facing unexpected collateral calls or loan-interest costs after rates increased.
- Risking policy lapse, surrender loss, or additional cash demands.
Pacific Life markets IUL products as offering index-based growth potential with guaranteed minimum interest crediting floors, while premium-finance strategies generally rely on borrowing to pay life insurance premiums and may involve collateralized loans.
Why Individuals Should Be Concerned
Potential claims include:
- Negligent misrepresentation
- Failure to disclose interest-rate risk
- Fiduciary breach by advisors
- Loan-disclosure violations
- Unregistered securities-style sales theories
- Economic loss from collateral calls, interest, or policy lapse
Signs You May Be Affected
- You purchased a Pacific Life IUL using premium financing.
- You were told the policy would largely pay for itself.
- Rising loan rates caused unexpected costs.
- You faced collateral calls.
- You would not have purchased the strategy had interest-rate risks been fully disclosed.
If you have encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.