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Feb 14, 2016 by |

California Annuity Fraud Attorneys: Why Annuities Sell


What Makes Annuities Sell?

Annuities have become a very prominent part of the financial landscape, with large numbers of senior citizens buying them in order to secure their financial future. Looking at the details of the product, however, it’s not clear that any of the many types of annuities products on the market is a particularly good investment for this end. Many financial planners consider annuities to be more risky than they’re worth, since essentially they tie up large amounts of a senior’s money and provide very modest returns for the most part. So what makes annuities sell?

The Incentive

If you’ve purchased an annuity or considered purchasing one, it’s likely you were never told much, if anything, about the commission your broker earned. The amount is built into your annuity package, and can be as much as 15% of the cost of your policy. If you’re investing a lot in an annuity, it’s likely your broker will be taking home a sizeable amount for themselves. They may keep this commission regardless of whether you surrender the policy, and regardless of whether it was a good fit for your financial situation.

Your broker earns larger commissions on policies that earns the most for the annuity company, and the ones that earns the most for the annuity company tend to earn the least for you. Indexed and variable annuities are some of the best-selling types of annuities, and brokers make the largest commissions off of these products. Brokers are salespeople, not a personal financial advisor, no matter what they might tell you to the contrary, and as such their solution to your problems is generally going to be to sell you a product.

Major Sellers of Annuities

Contact Us

If you believe you may be the victim of an improperly sold or administered annuity, contact Evans Law Firm at (415) 441-8669, or by email at Our firm handles annuity, insurance, and investment fraud, as well as financial and physical elder abuse, nursing home abuse, and qui tam/whistleblower law.

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