An indexed universal life policy is a legitimate form of permanent life insurance, but if you were misled about how it would perform, you may have a legal claim. Were you shown overly optimistic illustrations, promised tax free retirement income, told the policy would eventually pay for itself, or led to believe you could earn stock market returns without the risk? If so, you may be entitled to compensation. The IUL lawsuit attorneys at Hach & Rose, LLP are investigating misrepresentation claims involving New York consumers, including policyholders who committed retirement savings or borrowed money based on promises like these. Call 212-779-0057 to talk through what happened.
Built on 25 Years Representing New York's Labor Community
Hach & Rose, LLP has represented New York's union members, teachers, police officers, firefighters, and municipal employees for nearly 25 years. We know what a pension, a 401(k), or a deferred compensation account represents after a career of work. When someone is talked into moving that money into a complex insurance strategy on the strength of an attractive chart rather than a clear explanation of the risk, that deserves real scrutiny. If you're a working or retired New Yorker who feels misled about an IUL, this is exactly the kind of case we built our practice around.
What Is an Indexed Universal Life Insurance Policy
An indexed universal life policy is permanent life insurance with a cash value component tied to the performance of a market index like the S&P 500. You're not investing in the index directly. What the cash value actually does comes down to caps, participation rates, fees, insurance costs, and surrender charges, several of which aren't guaranteed and can change over time. That gap between a decades-long illustration and the policy's real performance is exactly why the information you were given before buying matters, and why it can turn into a legal issue.
Do I Have an IUL Lawsuit
A disappointing return alone doesn't give you a lawsuit. What matters is what you were told or shown when you agreed to buy and fund the policy. Warning signs of misrepresentation include an agent or salesperson who:
- Presented projected returns as expected or effectively guaranteed
- Marketed the IUL as a tax-free retirement plan, a private pension, or an investment strategy
- Claimed the policy could outperform the S&P 500 while protecting you from market losses
- Said premiums would only be required for a few years before the policy became self-funding
- Minimized the policy's charges, caps, participation rates, or other limits on cash value
- Recommended moving retirement assets or other savings based on misleading projections
- Encouraged borrowing to fund substantial premiums without explaining what happens if the policy underperforms
The specific representation matters, and so does what the salesperson left out. Tell us what happened and we'll help you figure out where you stand.
Poor Performance or Misrepresentation, What's the Difference
Illustrations rely on assumptions, and non-guaranteed values can change, so a lower than hoped for cash value isn't automatically fraud. A misrepresentation claim looks at the sales process itself, not the outcome. Did the salesperson make false or misleading statements, leave out real risks, or present a hypothetical illustration as if it were a likely result? Would you have bought the policy if the actual risks and costs had been explained clearly upfront? New York regulators draw this same line. The Department of Financial Services evaluates a recommendation based on what was known at the time it was made, not on how the policy performed years later.
What New York Law Requires When Someone Recommends Life Insurance
New York's Insurance Regulation 187 (11 NYCRR Part 224) requires producers who recommend a life insurance or annuity transaction to act in your best interest, weighing your financial situation, objectives, intended use of the policy, time horizon, existing assets and insurance, risk tolerance, and willingness to accept non-guaranteed elements like variable premiums, cash value, death benefits, or fees.
The Department of Financial Services has specifically addressed illustrations too: they can help explain how a product works, but a recommendation can't be based solely on projected values, especially on a policy with non-guaranteed elements. If your IUL was sold mainly on attractive projections while the real risks stayed in the background, that matters.
Were the Illustrations You Were Shown Misleading
An illustration isn't automatically misleading; it's built to show how a policy could perform under stated assumptions. The problem is how it gets used. If you were shown decades of projected growth presented as a likely retirement outcome, without a clear explanation of the costs and non-guaranteed elements behind it, you may have walked away with a very different understanding of the product than what you bought. Regulators are watching this closely. Revisions to the National Association of Insurance Commissioners' IUL illustration guidance took effect in April 2026, targeting historical averages that exceed maximum illustrated rates and back casted performance.
What Recent IUL Lawsuits Are Alleging
IUL litigation isn't one nationwide class action, it's a series of individual cases against different insurers, agents, and products:
- Mamboleo v. Pacific Life Insurance Company. A California class action alleging misleading marketing and illustrations for certain Pacific Discovery Xelerator IUL policies. Pacific Life denied wrongdoing. The court granted final approval of a $58 million settlement in May 2026.
- Shelstad v. Pacific Life. An Idaho jury awarded about $1.53 million in a case involving an IUL policy tied to a separate investment later revealed to be part of a Ponzi scheme. The Idaho Supreme Court addressed Pacific Life's challenge to that verdict in a 2025 decision.
- Kyle and Samantha Busch v. Pacific Life. The Busches alleged five IUL policies were sold as a safe, self-sustaining retirement strategy that would eventually generate substantial tax-free income. Their complaint alleged misleading projections and material omissions. The case reached a confidential settlement in February 2026, with no ruling on the underlying allegations.
These cases don't mean every IUL policy was improperly sold. They show why the representations, illustrations, and financial circumstances behind an individual sale need a close look.
Which IUL Insurance Companies We're Investigating
We're currently reviewing potential misrepresentation claims involving IUL policies issued by:
- Pacific Life
- Transamerica
- National Life Group
- Allianz
- Ameritas
- Global Atlantic
Being insured by one of these companies doesn't mean you have a claim, and being on this list doesn't mean a court found any of them did something wrong. What matters is how your specific policy was marketed, recommended, and sold.
What Evidence Can Help Prove an IUL Misrepresentation Claim
Useful evidence includes:
- The original policy and application
- Illustrations you were shown
- Emails, texts, and presentation materials
- Advertisements and retirement projections
- Account statements and premium notices
- Loan documents, if you borrowed to fund premiums
- Records showing where the money used to fund the policy came from
Preserve any communication with the agent or advisor too. Statements like "you'll never lose money" or "you only have to pay premiums for five years" can matter a lot if they influenced your decision, even if the conversation happened verbally and you don't have it in writing.
Attorney Frank Schirripa Handles IUL Lawsuits at Hach & Rose, LLP
Attorney Frank Schirripa brings experience in securities matters, investment losses, financial fraud, insurance sales, and FINRA arbitration to the firm's IUL investigations, which means he knows how to evaluate the financial transactions and sales practices behind these cases. People should be able to make major financial decisions based on accurate information, not a sales pitch built to hide material risk. We investigate the facts behind potential IUL claims and explain what options may be available under New York law.
Were You Misled When You Purchased an IUL Policy
If you bought an IUL because you were promised attractive retirement income, market beating performance, or limited premium obligations that turned out not to be accurately represented, we can review what happened and explain your rights. For many New Yorkers, the money used to fund an IUL represents decades of work and savings meant to provide security in retirement. Call Hach & Rose, LLP at 212-779-0057 to discuss your potential claim today.
Frequently Asked Questions
Is an indexed universal life policy a security?
Generally, no. An IUL is considered an insurance product rather than a security, which is different from variable life insurance. Depending on how the product was marketed and sold, other legal issues can still apply.
Can I sue because my IUL policy lost money?
Poor performance alone does not necessarily justify a lawsuit. Our team investigates claims involving alleged misrepresentations, misleading illustrations, material omissions, and deceptive sales practices that caused someone to purchase or substantially fund an IUL policy.
What if my agent told me my IUL would fund my retirement?
Preserve any illustration, email, presentation, text message, or other document showing how the policy was presented. Whether a statement was misleading depends on its context, including what was promised, what risks were disclosed, and whether the representation influenced your decision.
Is there an IUL class action lawsuit?
There is no single nationwide IUL class action covering every policy or insurer. Individual lawsuits and class actions have involved specific carriers, policies, and agents. Your rights depend on your individual circumstances, not simply on owning an IUL policy.
How long do I have to file an IUL misrepresentation lawsuit in New York?
The deadline depends on the legal claims involved and the facts of your transaction, including when the alleged misconduct occurred and when it was or reasonably could have been discovered. Different claims can carry different filing deadlines, so don't assume you have unlimited time simply because the policy is still in force. Reach out to our team to learn what deadlines may apply to your situation.