Brighthouse Life Insurance Breach of Contract Settlement

Brighthouse Life Insurance, a life insurance and annuity company, faced a class action lawsuit filed in 2021. The plaintiffs alleged that the company did not reduce the cost of insurance (COI) rates for its universal life insurance policies, even though there were improvements in mortality expectations and reductions in expenses. Instead, the company allegedly maintained high rates, which resulted in policyholders paying more than necessary to keep their coverage active.

The claims centered on the allegation that Brighthouse should have lowered the COI rates based on improved actuarial data and lower operating costs. The lawsuit involved claims related to the failure to adjust rates as expected, which is a matter of contract interpretation. Brighthouse has not admitted any fault but has agreed to the settlement to resolve these allegations.

Under the settlement terms, eligible class members can receive a cash payment based on their policy's face value; those with policies valued over $250,000 are eligible for a larger proportional share. Class members who do not wish to be part of the settlement must exclude themselves by December 11, 2026, while the deadline for objections is December 23, 2026. No claim form is required, as those who do not exclude themselves will automatically receive a payment.