A New York and New Jersey Lawyer Who Represents Policyholders and Beneficiaries in Life Insurance Denial Cases

Sometimes I am contacted by prospective clients who inquire about their legal rights against the insurance company and agent who sold them a cash-value life insurance policy that has not performed like they expected or were led to believe. These policies, often known as “whole” or “universal” life insurance, are designed to build up a cash value over the years and provide a death benefit when the insured passes away.

Various factors, such as the cost of insurance, dividend payouts, and changes in interest rates, can cause the cash value to fluctuate in a way that is not in accord with the policyholder’s expectations. Consequently, the policy will be worth less, might terminate sooner than originally planned, or both.

Sometimes this type of scenario can serve as the basis for a lawsuit, but other times it’s simply the result of a changing investment product and there is no basis to sue.

An article in the Wall Street Journal delves into the nature of these policies and, I think, provides a good start for the novice interested in learning about how they work. With respect to these types of policies, the old saying that “knowledge is power” is very apropos. When purchasing life insurance, you should try to educate yourself as much as possible about the product and ask questions of your agent, so as to avoid a future scenario where you are seeking a lawyer to advise you of your rights concerning a devalued policy.

Leave a Reply