Variable Universal Life

[Iva-Marie Stone]

What is the name of your state? AL

A year and a half ago, (April 2001) my husband bought a Variable Universal Life Policy. He has been paying quarterly and paying an amount over his premium that he was told would automatically be invested.

I have recently become securities licensed and read in one of my books that VUL policies have refund provisions for the first 2 years. I am not sure exactly what it says the refund is, but it is stated as a percentage of the sales charges.

We have decided that he got talked into this policy that he didn't need and decided to cancel it and buy strictly level term. The insurance company claims they don't owe us anything. Is it possible they owe us a portion of the sales charges and aren't telling us. Also, what about the money he was paying extra over his premium?

We feel scammed.

 

[ALawyer]

The policy contained a 10-30 day "free look" provision, and beyond that time you just can't get 100% of your money back because you have second thoughts.

You are entitled to what the policy provides in these circumstances, no more and no less.

IF there was fraud in the offer or sale, a misleading prospectus, filure to comply with state or federal requirements, etc. that's a different story.