an equal and opposite reaction
Case Details for "Life Insurance Companies"
Attention purchasers of annuities since 2004
The performance of life insurance and annuities purchased since January 1, 2004 may be far worse than originally illustrated to you by your insurance company. As a result, you may end up with less cash value in your policy than was illustrated to you when you bought it. Your insurance company may have anticipated this poor performance when you purchased your policy, but did not disclose that fact to you.
When you purchased your life insurance or annuity, you were probably shown an illustration projecting the future growth and performance of cash and other policy values based on then-current crediting rates paid by the insurance company on your policy. However, the performance of life insurance and annuities purchased since January 1, 2004 may be or may about to be far worse than originally illustrated to you by the insurance company. Indeed, you may have recently received a notice from your insurance company advising you that it will be lowering the crediting rate for your policy.
Poorer than illustrated performance results in lower policy cash values. That may increase the number of out of pocket premiums you will have to pay before the policy becomes self-sustaining, or cause you to lose some or all of your insurance coverage if you cannot pay those premiums. Your insurance company may have anticipated this poor performance when you purchased your policy, but did not disclose that fact to you.
If you purchased a life insurance policy or annuity from New York Life, American General, Genworth, Indianapolis Life or another insurer issued since January 1, 2004, you may have a claim for your losses if your policy is not performing as well as originally illustrated.
Posted on:11/12/2008
Company: Life Insurance Companies
Affected Class:
Scope: Nationwide
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