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.
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 -Â 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.Â 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 estateÂ or financial planning seminar you may be eligible to bring or join a lawsuit.
Email Evans Law Firm, Inc. 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 and / or
- Temporary and permanent injunctive relief and / or
- Restitution to the senior victims and / or
- Disgorgement of profits from Defendants and / or
- Treble, double, punitive and compensatory damages and / or
- Attorneys’ fees, penalties and costs of suit and / or
Lawsuits Have beenÂ Brought Against the Following CompaniesÂ Â
Lawsuits have been brought against the following insurance companies and banks:Â AIG Sun America; Allianz Life Ins. Co.; American Equity; American International Group; Bank of America; Conseco Life Ins. Co.;Â Fidelity and Guaranty Life Insurance Company; Jackson National Life Insurance Company; National Western Life Ins. Co. and Standard Life Insurance Company of Indiana.