What You Need to Know
- Carolyn Hawkins thought she owned a fixed-premium policy.
- Her lawyer contends that the policy was too hard to understand.
- He says that, in effect, she flushed all of the premiums down the drain.
A 94-year-old Florida woman says financial advisors misrepresented how a universal life insurance policy would perform.
The woman, Carolyn Hawkins, believed the universal life policy would have stable premiums, but, instead, the premiums increased to $90,000 in 2022, from $25,000 in 2011, and Hawkins had no choice but to let the policy lapse, according to a complaint that Hawkins and her trust filed earlier this month in a state court in Escambia County, Florida.
Hawkins bought the policy, which was originally written by Hartford Life, with help from advisors at a firm that’s now known as Voya Financial Advisors. Hartford Life is now Talcott Resolution Life. Hawkins’ suit names Voya, Talcott Resolution Life and the two advisors as defendants.
Representatives for Voya declined to comment, and representatives for Talcott Resolution Life were not immediately available to comment. The advisors, Kent Herring and Ralph Savoie, could not be reached for comment.
Michael Bixby, Hawkins’ attorney, said the problems with the policy had taken a toll on his client. “She had planned on providing for her daughters,” Bixby said. “Carolyn did not believe it when she received the notice in the mail that the policy would lapse and be worthless.”
Hawkins’ policy: Hawkins worked as a teacher for about 20 years and then ran a national beauty pageant program.
She originally had a life insurance policy from Lincoln Financial.
In 2009, she met with an advisor, Kent Herring. Herring recommended that she buy a universal life policy, to keep the premiums stable. She bought a $2 million Hartford Bicentennial UL Freedom policy with a $46,000 annual premium.
Herring presented himself as a fiduciary, and Florida law holds him to a fiduciary standard, according to the complaint. He shared responsibility for working with Hawkins with a colleague, Ralph Savoie.
In 2011, Hawkins lowered the policy death benefit to $1 million and the annual premiums to $25,000.
