Skip to Content
415-441-8669 | TOLL FREE: 888-50EVANS

PHONE: 415-441-8669 | TOLL FREE: 888-50EVANS

Sep 11, 2014 by |

Annuities May Not Be the Best Option for the Elderly


Annuities are popular among the elderly because they are seen as a low risk, safe investment. Some are willing to forego maximum yields for security, though they understand a long term interest rate will always be lower than a short term one. There are several drawbacks however that suggests an annuity may not be the best option for the elderly.

While the elderly appreciate the security of a guaranteed lump-sum payment for the rest of their lives, their money is inaccessible and there is no way out. Insurance companies will not allow any changes once an investor chooses an annuity option.

Annuities are also characterized by low returns and the potential for higher taxes than other forms of investment. Investments like bonds have tax benefits, but annuities typically do not. The post-tax returns will always be lower than the advertised rate.

Transparency in the annuity market is very low. This makes it is hard to know how an elder’s money is actually being spent. In general, low transparency correlates with a high potential for abuse.

It is also important to take into account the financial security of the insurance company you contract with. There have been countless collapses since 1991 when Executive Life Insurance, the largest life insurance company in California at the time, became insolvent.

Evans Law Firm, Inc. and its attorneys represent victims of annuity fraud, elder financial abuse, life insurance and consumer fraud, insurance and banking fraud, and other types of financial fraud. If you think you or someone you know has been the victim of fraud or abuse, contact Evans Law Firm for a free and confidential consultation by calling 415-441-8669 or by e-mail at –if you are in California, please send us a copy of your annuity policy if you would like one of our lawyers to review it for free.

Law Dragons 500 badge Million Dollar Advocates Forum SuperLawyers Badge Best Lawyers Badge Avvo

Our Passion For Justice

415-441-8669 888-50EVANS

Hear What Our Clients Have To Say

"The Evans Law Firm has great attorneys that are relentless, with exemplary performance and energy devoted to my case. My case would not have resolved without Ms. Evans - a tireless attorney that will not give up or stop until the case is resolved successfully."
Posted By: John Evans

Read More Reviews