Beware the Hype
Agents Target Seniors
Deferred Annuities Are Expensive, Complicated Insurance Products
Based on years of litigation experience, our lawyers recommend senior consumers avoid deferred annuities or certain kinds of misleading life insurance contracts. Insurance carriers, marketing groups and agents tend to reinvent the ways they sell these products over time; the latest is to sell seniors deferred annuities as “strategies.” Sometimes the strategies are pushed at “free lunch” seminars. The Alameda County financial elder abuse attorneys at Evans Law Firm, Inc. represent senior consumers who lose money on deferred annuities and certain types of misleading life insurance through high commissions and fees, incomplete or deceptive information, withdrawal charges, botched replacement transactions, and tax bills. If you or someone you know is over 60 and lives in Alameda County or elsewhere in California and has lost money on an indexed deferred annuity, call us today at 415-441-8669.
Agents use low bank interest rates and the COVID-19 volatility in the stock market to push the relative safety and “guarantees” of deferred annuities for retirement income. But the contracts work differently in practice from the promises. Here are just some of the ways senior consumers can lose money on annuities:
Surrender charge. If you take all or part of your money out of a deferred annuity before maturity, you will pay a surrender charge. The surrender period is a set period of time that typically lasts six to fifteen years after you purchase the annuity. Surrender charges come right out of your savings, and can be as high as 15% in early years. This can really hurt a senior who may need a withdrawal for medical expenses or increased care costs.
Tax bills and penalties. Withdrawals from deferred annuities are taxable, typically at ordinary rates.
Limitations on your return. Dividends on the stocks held in whatever funds your annuity is invested in, are not included in calculating your gain. In a direct mutual fund investment you would receive the benefit of those dividends.
Caps and participation rates. Annuity carriers set caps on your returns and participation percentages that limit your return to a portion of the gains made in the chosen index. Direct investment in the index would not be subject to these limitations.
Insurance company failure. Many deferred indexed annuities promise to make payments many years into the future. Annuities are not federally insured like bank deposits and CDs. The promise to pay is only as good as the ability of the insurance company to do so in the future.
Always consult an investment professional with nothing to gain from a sale if you are considering a deferred annuity and always consult your tax advisor before you purchase, surrender or exchange an annuity because every deferred annuity transaction has tax consequences.
If you are over 60 and live in California and have lost money on an indexed or other type of deferred annuity or life insurance contact Ingrid M. Evans and the other Evans Law Firm financial elder abuse, annuity and life insurance attorneys at (415) 441-8669, or by email at <a href=”mailto:email@example.com”>firstname.lastname@example.org</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 that 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
Americo Financial Life and Annuity Insurance Company
Ameriprise Financial/RiverSource Life Insurance Company
Ameriprise Financial/Securities America, Inc.
Athene Annuity & Life Assurance Company
Athene Annuity and Life Company
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
Legacy Marketing Group
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.