Migliaccio & Rathod LLP is investigating whether John Hancock indexed universal life policies were sold through premium-finance strategies that understated rising-rate risk, collateral-call risk, or the possibility that policy performance would not keep pace with loan costs.
Reported Issues
Consumers report:
- Purchasing large IUL policies through bank-financed premium loans.
- Being told the policy’s credited interest would outpace borrowing costs.
- Facing unexpected loan-interest increases after 2022.
- Being required to post additional collateral.
- Risking policy lapse or surrender losses.
Premium-financed life insurance is commonly described as a strategy for high-net-worth individuals to fund large life insurance premiums through borrowing, but lenders and advisors also warn that collateralized loans involve risks and may not be suitable for all borrowers.
Why Individuals Should Be Concerned
Potential claims include:
- Misleading premium-finance sales practices by John Hancock
- Failure to stress-test interest-rate risk
- Fiduciary breach by advisors
- TILA or Reg Z disclosure defects
- Economic loss from collateral calls and loan interest
- Rescission of policies or financing arrangements
Signs You May Be Affected
- You purchased a John Hancock IUL through premium financing.
- You were told the strategy would require little out-of-pocket cost.
- You faced collateral calls or higher loan interest.
- Your policy growth did not exceed borrowing costs.
- You believe the risks were not adequately 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.