Sep 10, 2019 by |

California and Alameda County Annuity and Financial Elder Abuse Attorney: Annuities Are Not Liquid Investments

ATTORNEY NEWSLETTER

What It Means For An Investment To Be Liquid Versus Illiquid

Annuities Tie Up Your Money For Years

Our lawyers recommend you always beware when an insurance agent tries to sell you annuities or life insurance, particularly if you’re a senior. One of the primary reasons senior consumers in particular should be weary of annuities is that money in an annuity is illiquid, that is, it cannot be quickly and cheaply converted to cash.  Money in annuity can be withdrawn only by paying a hefty penalty in the “surrender” period for the annuity, which can be as long as 15 years. Withdrawals are also subject to tax, typically at ordinary income rates, and may reduce or eliminate entirely other “enhanced” benefits sold with the annuity such as income and death benefit riders. 

The Alameda County annuity and financial elder abuse attorneys at Evans Law Firm, Inc. represent consumers, often seniors, who have lost money because of withdrawal charges and tax bills as a result of the surrender or exchange of annuities and life insurance. If you or someone you know is over 60 and lives in Alameda County or elsewhere in California and have suffered a loss as the result of a withdrawal or surrender of an annuity or life insurance policy, call us today at 415-441-8669.

Liquidity is a particular concern for seniors. Medical emergencies, increased care costs, and other needs for immediate cash hit persons on fixed income harder than persons whose income levels (and borrowing abilities) are still growing.  If a senior is forced to surrender an annuity in order to raise immediate cash, penalties and tax hits can wipe out any return the senior expected for future income levels.  Always consider the liquidity of any offered investment and consult your tax advisor and professionals with nothing to gain from the sale of the proposed product.Never allow yourself to be pressured into a purchase.  Avoid tactics like “free lunch” seminars; the end result can be a sale of an expensive annuity or life insurance policy that you do not need and which can wipe out savings through fees, penalties and low growth. 

Contact Us

If you or a loved one has suffered a loss on an annuity in Alameda County or elsewhere in California, contact Ingrid M. Evans and the other Evans Law Firm annuity attorneys at (415) 441-8669, or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. California law provides injured seniors with restitution (getting your money back), extra damages (to punish the fraudulent conduct) and awards of attorneys’ fees and costs to the senior forced to bring an action against the wrongdoers. If you have suffered a loss from this kind of agent/advisor misconduct, the lawyers at Evans Law Firm will work with you to see  those responsible for your loss pay up.  Our attorneys have experience with complex financial contracts and large insurance companies.  We can help guide your case through a jury trial or toward an equitable settlement.  We handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.

Annuities and life insurance produce large sales commissions for brokers but are often inappropriate products for consumers, especially seniors. Leading providers and distributors of life insurance and fixed, variable and fixed indexed deferred annuities in California are listed below.  We are not in any way suggesting that any of these carriers or distributors has done anything wrong.  Rather, the list is provided solely as a reference for our readers.

AIG/American General Life Insurance Company

Allianz Life Insurance Company of North America

American Equity Investment Life Insurance Company

American General Life Insurance Company/AIG

American International Group, Inc. (AIG)

American National Life Insurance Company

Ameriprise Financial/RiverSource Life Insurance Company

Ameriprise Financial/Securities America, Inc.

Athene Annuity & Life Assurance Company

Athene Annuity and Life Company

Athene USA

Aviva Life Insurance Company

AXA Equitable Financial Services, LLC

AXA Equitable Life Insurance Company/AXA US

AXA Advisors, LLC

Bankers Life Insurance and Casualty Company

Berkshire Hathaway Group

Berkshire Hathaway Life Insurance Company of Nebraska

Brighthouse Financial, Inc./MetLife

Citigroup Global Markets, Inc.

Crump Life Insurance Services, Inc.

CUNA Mutual Group/CMFG Life Insurance Company

Delaware Life Insurance Company

EquiTrust Life Insurance Company

Fidelity & Guaranty Life Insurance Company

Forethought Life Insurance Company/Global Atlantic Financial Group

Genworth Financial, Inc.

Genworth Life and Annuity Insurance Company

Genworth Life Insurance Company

Global Atlantic Financial Group/Forethought Life Insurance Company

Guardian Life Insurance Company

Guggenheim Partners, LLC

Guggenheim Partners/Security Benefit Life Insurance Company

ING USA Annuity and Life Insurance Company

Jackson National Life Insurance Company

John Hancock Life Insurance Company

Lincoln Benefit Life Company

Lincoln Financial Group

Massachusetts Mutual Life Insurance Company

Merrill Lynch Life Agency Inc.

Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.

Minnesota Life Insurance Company

National Life Group

National Life Insurance Company/Equity Services, Inc.

National Western Life Insurance Company

Nationwide Life Insurance Company

New York Life Insurance Company

North American Company for Life and Health Insurance

Northwestern Mutual Investment Services, LLC

Northwestern Mutual Life Insurance Company

Northwestern Mutual Wealth Management Company

Oxford Life Insurance Company

Pacific Life Insurance Company

Principal Financial Group

Prudential Life Insurance Company

Raymond James Insurance Group

Reliance Standard Life Insurance Company/Tokio Marine Group

RiverSource Life Insurance Company/Ameriprise Financial

Securities America, Inc./Ameriprise Financial

Security Benefit Corporation

Security Benefit Group, Inc.

Security Benefit Life Insurance Company/Guggenheim Partners

Security Investors, LLC

The Standard Life Insurance Company

Symetra Financial Corporation

Symetra Life Insurance Company

Transamerica Life Insurance Company

The United States Life Insurance Company in the City of New York

Unum Life Insurance Company of America

USAA Life Insurance Company

The Variable Annuity Life Insurance Company

Voya/Reliastar Life Insurance Company

Wells Fargo Advisors

Western & Southern Financial Group

The Western & Southern Life Insurance Company

World Financial Group Insurance Agency, Inc.

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