Variable Life Insurance Investment Fraud
Variable life insurance is a permanent policy similar to variable annuities offering you greater flexibility and potential return on investments than traditional policies. While variable life insurance can be beneficial, numerous insurance fraud cases relate to these products.
We urge you to contact us at Oakes & Fosher, LLC, if you suspect variable life insurance investment fraud. We will provide an honest and accurate assessment of your case and advise on how best to proceed. Our experienced insurance fraud attorneys can help you recover the compensation you deserve and hold those responsible for your losses accountable.
Contact us today for a free consultation.
Variable Life Insurance Guide
What is Variable Life Insurance?
Unlike traditional life insurance policies, variable life insurance allows you to choose from several investment options for premiums. This type of policy holds more risk, as the gains or losses depend on how well the chosen investments perform. There are generally higher premiums associated with variable life policies.
However, if the investments perform well, you can see higher returns than traditional life insurance policies. Variable life insurance also offers living benefits and tax-deferred growth for those looking to build long-term wealth.
The Issue with Variable Life Insurance Investments
Variable life insurance investments can be complex and may prevent investors from withdrawing or transferring funds for several years. Numerous investors have discovered that the broker who advised them misrepresented the investment. Brokers may falsely claim that since the investment is a form of insurance, the principal and income are entirely secure.
Although their gains are typically capped, investment products like these are similar to the stock market regarding returns. However, investors may not receive dividends, accounting for almost 40% of the market’s returns and reducing overall returns.
Variable life insurance investments contain additional charges that can affect returns, such as the following:
- Administrative fees
- Mortality fees
- Expense risk charges
- Surrender charges
- Investment advising fees
Investors, especially those with little experience, shouldn’t believe that variable life insurance is a low-risk investment. It’s worth noting that variable life insurance policies cannot be sold as investments, according to several securities regulators.
Additionally, they may not be suitable for some investors, such as older individuals or those who wish to access their funds. Higher surrender charges and lengthy holding periods come with variable life insurance, which can tie up an investor’s funds for eight years or more.
Signs of Variable Life Insurance Fraud
Insurance brokers often stand to make more money by selling policies with higher premiums. Additionally, some brokers aren’t forthright about the risks of variable life insurance policies or fail to provide accurate investment information.
If you suspect variable life insurance fraud, there are several signs to look out for, such as the following:
- Unauthorized charges to your account
- Fake or falsified insurance policies
- High-pressure sales tactics from agents or brokers
- Misleading or incomplete information about the policy’s benefits or performance
- Unusual or unexpected fees associated with the policy
- Being sold a policy that does not match your needs or budget
How Insurance Fraud Attorneys Can Help
If you suspect fraud, the attorneys of Oakes & Fosher can help. Our expert insurance fraud attorneys have successfully recovered millions of dollars for victims.
If your case involves a dispute with a broker or financial advisor, you may qualify for FINRA arbitration. This administrative process can help resolve disputes between investors and their brokers. In FINRA arbitration, both parties present their case before an independent panel of arbitrators and agree to abide by their decision.
Our attorneys can guide you through the process, from filing your claim to appearing before the panel. We have a successful track record in FINRA arbitrations and will help you get the justice and financial compensation you deserve.
Why Choose Oakes & Fosher for Your Insurance Fraud Needs?
Oakes & Fosher strives to provide our clients with personalized attention and dedicated support. Our attorneys have decades of combined experience representing victims of insurance fraud and understand the intricacies of these cases.
We utilize a comprehensive approach for every case and our extensive resources to pursue justice. We know the latest developments in insurance law and aggressively pursue all legal options to ensure our clients receive maximum compensation.
Since 2007, Oakes and Fosher has won more cases on behalf of individual investors tried before full FINRA panels than any other attorney in the country.
Protecting your rights is essential if you’re a variable life insurance fraud victim. Our lawyers understand these cases and have a successful track record in helping victims recover financially.
Contact us today to speak with our expert securities fraud lawyers and find out how we can help.
Oakes & Fosher, LLC
1401 South Brentwood Blvd.
Suite 250
St. Louis, MO 63144
314.804.1376
