Phoenix Life Insurance Company increasing cost-of-insurance rates on life insurance policies

Squitieri & Fearon, LLP is investigating possible claims for a class action against Phoenix Life Insurance Company for increasing the cost of insurance on Accumulator (I, II, III, and IV) and Estate Legacy Universal Life policies. Recently Phoenix Life Insurance Company (or PHL Variable Insurance Company) sent letters to certain customers who have universal life policies explaining that Phoenix would increase the cost of insurance “certain anticipated experience factors are now less favorable than we anticipated when we established the cost of insurance rate schedule.”  Phoenix indicated that it would impose a flat “overall increase to cost of insurance rates, as well as progressive increases…beginning when an insured reaches age 71 through age 85.”  Policy cost increases will take place on the next anniversary date after November 2017 but .

On policies for insureds older than 85, Phoenix would implement the full increase immediately.

Some Accumulator products will not feel the effect of the increase until after December 31, 2020.  Those policies were part of the Phoenix lawsuit that was settled in 2015. In that case, Phoenix raised the cost of insurance on Accumulator policies issued between 2004 and 2008, with face amounts of $1,000,000 or more, and issue ages equal to or above 65 or 68, depending on the policy. The plaintiffs alleged that the increase, which took place in 2010 and 2011, “did not apply uniformly to a class of insureds, discriminated unfairly between insureds of the same class, and were improperly designed to recoup past losses”

If you or someone you know has a policy with Phoenix Life Insurance Company, and would like to learn more about our investigation, please fill out our online form, or contact Stephen Fearon at  stephen@sfclasslaw.com or by phone at (212) 421-6492.


Phoenix Life Insurance Company increasing cost-of-insurance rates on life insurance policies

    Any information that you submit will be maintained as confidential. If Squitieri & Fearon, LLP, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Squitieri & Fearon, LLP will contact you to discuss the matter and whether to establish an attorney client relationship.