Ingrid Evans speaks on Protecting Yourself From Elder Financial Abuse with Deputy District Attorney Jackie Lacy on KFWB Radio.

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Annuity Abuse Litigation

Deferred Annuities, also known as fixed annuities are long term investments that often do not allow withdrawals for 10-20 years or more and can carry exorbitant fees for early withdrawal. The purchaser of these annuities deposits a premium in exchange for a rate of return that is typically guaranteed for the first year. After that a lower minimum guaranteed rate of return is offered over the term of the annuity. What distinguishes this type of annuity from others is the deferred receipt of money. Additionally, many annuities are written to be purposefully confusing making it easy for financial professionals or agents to gloss over the technical details of the various fees and charges.

Unfortunately, annuities are more and more commonly being sold to seniors and the elderly 60 years old and older. Much of the money available for transfer into annuities is in the hands of senior citizens who are mesmerized by the idea of a consistent return on their money in a “safe” investment. Even though, long term investments, such as annuities, are not typically considered a suitable option for elder adults, who may need immediate access to their money for medical care or other emergencies. Sadly, in many cases payouts or withdrawals are not allowed until after the annuitants life expectancy.

Ingrid Evans and the Evans Law Firm are dedicated to helping victims of annuity fraud through lawsuits brought against the various financial institutions, such as insurance companies, agents and banks, that fraudulently sell long term investments, like annuities, to senior and elder adults.

What Are These Senior And Elder Financial Annuity Lawsuits About?

Lawsuits have been brought that allege that certain insurance companies and banks target elders and use scare tactics to pressure seniors into investing their life savings in deferred annuities, which can make the seniors' savings inaccessible for 10-20 years (even in the case of emergencies), can carry exorbitant surrender charges and severe tax penalties, and can create complicated estate problems after death. Appealing, yet misleading, sales pitches to seniors often describe annuities as “guaranteed” and compare them to having money in the bank that is “safe” but pays a better return. Confusing language in the annuity contract often obscures the devastating fees involved if money needs to be withdrawn as the senior citizen ages.

What Is An Annuity And When Are They Inappropriate For Seniors?

Annuities are insurance contracts. Annuities are designed to begin providing a return on investment after a lengthy period, sometimes as long as 10-20 years. Many of these annuities limit, particularly deferred annuities, for a period of years, an annuitant's access to their initial investment unless the annuitant is willing to incur significant "surrender" charges and penalties. As a result of these significant surrender charges and penalties, many senior purchasers would be unable to access funds trapped in deferred annuities - in the event of medical emergencies or other financial problems - without placing risk to their principal or earned interest. Additionally, many of these annuity products are sold by agents being paid significant commissions for such sales, creating a potential conflict of interest. For this reason, certain insurance companies, as well as industry standards, recognize that these annuities must be carefully matched to the needs of those over the age of 60. The lawsuit alleges that Defendants know, or should know, that many financial products they sell to seniors over the age of 60 are entirely inappropriate to the population they specifically target, namely seniors. These deferred annuities are often sold through banks or through free estate or financial planning seminars.

Who Is Eligible To Join Senior And Elder Financial Abuse Lawsuits?

The lawsuits are designed to be class actions. If you are 60 years of age or older (at the time of purchase) and have purchased an annuity from a bank or after attending an estate or financial planning seminar you may be eligible to bring or join a lawsuit.

Contact us for a free and confidential consultation. Email us at info@evanslaw.com or call 415-441-8669 if you would like an attorney to investigate whether you have a potential Elder Financial Abuse claim.

What Remedies Do The Senior Lawsuits Seek?

To enjoin Defendants' sales of improper annuities to seniors
Temporary and permanent injunctive relief
Restitution to the senior victims
Disgorgement of profits from Defendants
Treble, double, punitive and compensatory damages
Attorneys' fees, penalties and costs of suit

Lawsuits Have been Brought Against the Following Companies

Lawsuits have been brought against the following insurance companies and banks: ; AIG Sun America; Allianz Life Ins. Co.; American Equity; American International Group; American National Insurance Company; Bank of America; Conseco Life Ins. Co.; Fidelity and Guaranty Life Insurance Company; Jackson National Life Insurance Company; National Western Life Ins. Co.; Standard Life Insurance Company of Indiana.

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Contact us for a free and confidential consultation.