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A number of well-known life insurance companies have marketed a concept known in the insurance industry as the "vanishing premium." These companies advertised the concept that if a policyholder paid his premiums for a certain number of years, he would then be covered with a term policy for his lifetime. Generally, these policyholders were sold a whole life policy with the premiums going to buy a current term policy. Policyholders were told the excess money would accumulate and be used to pay the premiums for future term policies. Hence, the premiums would "vanish."

Policyholders across the country were later informed, however, that their premium would not vanish when promised, but would continue a few more years in order to guarantee the term policy for life. It has been alleged in a number of lawsuits that these actions constituted fraud.

Class action lawsuits were filed all over the country, most of which were consolidated in the United States District Court in Minnesota. Several companies have entered into a proposed settlement of these actions. These settlements are considered "opt out" settlements, which means that unless you opt out of the settlement by a certain date, you are agreeing to the settlement and will accept its terms.

If you feel you have been a victim of vanishing premium insurance fraud, before settling your claim for less than you deserve, learn the answers to the important questions below.

• What is the proposed settlement if I don't opt out?
• Which insurance companies have entered into a proposed settlement?
• Which insurance companies have not entered into a proposed settlement?
• How do I opt out of a proposed settlement?