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Life Insurance Sales Practices Attorney

Helping Kentucky Residents punish unfair insurers.

At some point in your life you may have considered buying life insurance and probably have done some research. Choosing an insurance company may involve reading complex texts for the purposes of determining what you are buying and why. So you eventually make a choice, after being guided by the facts provided by the insurer. Your success depends on the insurer you choose; however, the unfairness of the services offered may be hidden. We can help when your financial goals are compromised.

In general, when a client makes a payment for whatever service is being purchased, the entire sum goes into the provider’s account. Part of it is used for covering the costs associated with the company’s running expenses (employee’s wages, their insurance, benefits, etc.) Another part is devoted to paying taxes. Then there’s the profit - that is what they made by providing services to you. This way your life insurance policy has a cash value. You continue with your regular payments and the cash value of your life insurance policy becomes even more valuable.

Some insurers will use a “churning and twisting” strategy, which is when they will convince you, the customer, to use this built-up cash value of the existing policy for buying a new policy with “more coverage”. What they “forget” to tell you is that the coverage you already have is more than sufficient. Obviously selling you a new policy raises the company’s revenues, and the agent’s commissions.

“Churning and twisting” is illegal and are the two most prevalent deceptive Life Insurance sales practices. Churning is a term used in the securities industry involving and aggressive trading technique. Twisting is the misrepresentation of the provided services. These two tactics go hand in hand in the unfair insurance trading industry. They both can lead to consumer’s loss of money and financial security.

If you believe that you became a victim of churning and twisting within life insurance sales, Mr. Poppe be able to help you.

Remember the misrepresentation of facts by businesses to their customers is illegal and requires legal attention. We can help – call our office today to get your case evaluated.