Hartford Life Insurance Policy

Hartford designed the Stag Variable Life Last Survivor II policy with a variable death benefit guarantee. Most variable policies include a death benefit guarantee or a no-lapse guarantee. The typical guaranteed amount is equal to the full face amount of the policy. The design of the Stag VLLS purports to allow the insured to set the guarantee amount to zero or any part of the face amount between 20% and 100%. Hartford describes this feature of the Stag VLLS as unique in the marketplace.

Allegedly, Hartford designed the Stag VLLS so that there are significant costs associated with the variable death benefit guarantee. The amount of the death benefit guarantee is believed to set a mortality and expense charge in the policy; the surrender charges associated with the policy; and the agent or broker’s compensation. Our attorneys believe that the connection between the amount of the death benefit guarantee and the charges in the policy are not explained in the policy, the prospectus, or sales illustrations. Furthermore, it is our belief that there is no place on the policy application where the insured can elect a death benefit guarantee amount.

The software which generates sales illustrations automatically uses the total first-year premium to calculate the maximum amount of death benefit guarantee that premium will purchase. This makes the entire first-year premium fully commissionable. If an insured could select a zero death benefit guarantee amount, the agent would not receive any compensation. When a death benefit guarantee amount becomes part of the policy, it results in high policy charges that the insured is obligated to pay for 10 years, according to our attorneys.

If you purchased a Hartford life insurance policy, our insurance attorneys would like to discuss your policy to determine whether you are being unfairly charged.

Contact us today through our free case review form to find out if you could be eligible to start or join a class action lawsuit.