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Jun 16, 2016 by |

Alameda Elder Abuse Lawyer: Deferred Income Annuity

ATTORNEY NEWSLETTER

Deferred Income Annuity: good deal or bad investment?

A Deferred Income Annuity can be thought of as an apple tree; the longer you wait to receive your apples, the bigger they are. We call that the crux of delayed gratification. However, if you die before the income starts, there is a return of premium option, where your payments would be distributed to beneficiaries in exchange for costs.

Theoretically, it could be a good investment for people who possess a lot of income from other products or sources. It is like a garden; you will produce apples but also pears or oranges and thus you will have fruit all year.

On the other hand, it could be an agricultural disaster because the DIA still stays an annuity. The money invested in the annuity is frozen; especially in the DIA, as you will not receive the first incomes until 10 or 15 years after you contracted the annuity. You would have the trees without the apples yet. So if you have medical expenses or need a lot of money quickly, you couldn’t take back your money invested in the annuity unless you pay penalties.

So, if you are planning to buy a DIA you should think at three key variables: your age when you contract the annuity (sooner is better), the amount you invest in the annuity, and when you want the first income begin. One of our Alameda elder abuse attorneys can help walk you through the process or present the risks of a product you may be considering.

Some of the major annuity and life insurance providers are:

But sometimes it is already done; you have your apple orchard. Someone sold you a DIA without presenting the risks and you need your money back. You should contact an attorney who handles annuities to know your legal options and receive the best advice.
If you have any trouble with your annuity or against your insurance company, contact the Evans Law Firm at (415) 441-8669, or by email at info@evanslaw.com. The Alameda elder abuse attorneys at Evans Law Firm handle insurance and annuity fraud, as well as banking fraud, qui tam and whistleblower cases, financial and physical elder abuse, nursing home abuse, and healthcare fraud.

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