Cosgrove Law Group recently settled a claim on behalf of a group of its investor clients for over $1,000,000.00. The clients were an irrevocable life insurance trust and the four beneficiaries of that trust. Residing within the trust was a variable universal life insurance policy with a death benefit/face value of $6,000,000.00. The cost of a variable universal life insurance policy is funded by both premiums and stock market or other subaccounts’ appreciation on those invested premiums.
An attorney-trustee and a national broker-dealer were charged with managing the subaccounts. Unfortunately, neither did their job and the paid premiums were left sitting in cash in the subaccounts. Over the course of 20 years, the subaccounts missed out on millions of dollars of stock market appreciation. The financial firm settled a FINRA arbitration and a state court case against the attorney-trustee is pending.
If you were sold a variable universal life insurance policy that lapsed or is about to as a result of mismanagement, do not hesitate to contact one of the attorneys at Cosgrove Law Group, LLC at 314-563-2490.