Pacific Life Settles Class Action for $58 Million
Pacific Life Insurance Company has agreed to a $58 million settlement to resolve a class action lawsuit alleging that the company systematically overcharged cost-of-insurance (COI) rates on universal life insurance policies. If you held a Pacific Life universal life insurance policy between January 2010 and December 2024, you may be eligible for a payment.
What Was the Lawsuit About?
The class action, filed in the Central District of California, alleged that Pacific Life increased COI rates on certain universal life policies not because of legitimate actuarial factors (such as increased mortality risk) but to recoup investment losses the company suffered during the 2008 financial crisis and subsequent low-interest-rate environment.
Universal life insurance policies have an internal cost-of-insurance charge that is deducted from the policy's cash value each month. While Pacific Life reserved the right to adjust these charges, the plaintiffs argued that the company used this flexibility to effectively transfer investment risk to policyholders — a practice they called deceptive and a breach of contract.
"Pacific Life promised that COI increases would be based on actuarial factors. Instead, they used COI charges as a profit lever to compensate for their own poor investment returns," alleged the plaintiffs' lead counsel at Hagens Berman Sobol Shapiro.
Who Is Eligible?
You may be eligible for a payment if you meet the following criteria:
- You owned or were the beneficiary of a Pacific Life universal life insurance policy (including indexed universal life)
- The policy was in force at any point between January 1, 2010 and December 31, 2024
- Your policy experienced a COI rate increase during that period
- You did not previously release claims against Pacific Life related to COI charges
The settlement class includes approximately 350,000 policyholders. If you are eligible, Pacific Life should have sent you a notice by mail. If you did not receive a notice but believe you qualify, you can check your eligibility on the settlement website.
How Much Could You Receive?
Individual payments will vary based on:
- The type and size of your policy
- The amount of COI overcharges during the class period
- How long the policy was in force
- The total number of claims filed
The settlement administrator estimates that individual payments will range from $50 to $3,500, with the average payment expected to be approximately $165. Policyholders with larger policies and longer holding periods will receive proportionally larger payments.
How to File a Claim
Filing a claim is straightforward:
- Online: Visit the official settlement website at PacificLifeSettlement.com and submit a claim form. You will need your policy number or the unique ID from your notice.
- By mail: Download and print the claim form from the settlement website, complete it, and mail it to the Settlement Administrator at the address provided on the form.
- Deadline: All claims must be submitted by August 15, 2026. Late claims will not be accepted.
You do not need to provide proof of COI increases or calculate overcharges yourself — the settlement administrator will determine your payment amount based on Pacific Life's records.
Other Options
If you are a class member, you have three options:
- Submit a claim to receive your share of the settlement (recommended)
- Opt out by June 30, 2026 if you want to preserve your right to file an individual lawsuit against Pacific Life
- Object to the settlement terms by June 30, 2026 if you believe the settlement is inadequate
The final fairness hearing is scheduled for July 22, 2026 before Judge Andrew Guilford in the Central District of California.
Bottom Line
If you had a Pacific Life universal life insurance policy between 2010 and 2024, take five minutes to check your eligibility and file a claim. The money is already set aside — all you need to do is claim it before the August 15 deadline.
