What Seniors Should Understand About Indexed Annuities
Understanding Indexed Annuities
SEC Bulletin Updated
Insurance agents often approach senior citizens with indexed deferred annuities as a “safe” investment for securing future income. Seniors need to understand how these complicated insurance contracts operate before committing to a sale. The Marin County financial elder abuse attorneys at Evans Law Firm, Inc. represent senior consumers who lose money on indexed annuities due to fees, undisclosed or misleading information, withdrawal charges, botched replacement transactions, and tax bills. If you or someone you know is over 60 and lives in Marin County or elsewhere in California and has lost money on an indexed annuity, call us today at 415-441-8669 or toll free at 888-50EVANS (888-503-8267).
The U.S. Securities and Exchange Commission (SEC) directly regulates variable annuities which are considered securities subject to securities registration and reporting requirements. While indexed annuities are not considered securities, the SEC has nevertheless provided guidance with respect to these products. The SEC’s Office of Investor Education and Advocacy recently updated the SEC’s Indexed Annuities Investor Bulletin*, which contains some important considerations for senior consumers considering indexed annuities.
Indexed annuities involve risk and sometimes hidden expenses that seniors especially need to understand. Here are two excerpts from the SEC bulletin worth noting:
“… indexed annuities can expose investors to investment losses. If the indexed annuity is a security, generally a prospectus will be delivered to you. Before purchasing an indexed annuity, you should ask your financial professional what type of indexed annuity it is, what risks are involved, and about any expenses such as commissions and other fees you will have to pay. You should consider asking the question, “How much of the money I invest is going to work for me and how much is going to fees and expenses?”
“Before purchasing an indexed annuity, you should understand how this return is calculated and the extent to which price declines in the index can affect the performance of the indexed annuity.”
If you are over 60 and live in Marin or elsewhere in California and have lost money on an indexed annuity or indexed universal life insurance contact Ingrid M. Evans and the other Evans Law Firm financial elder abuse, annuity and life insurance attorneys at (415) 441-8669, toll free at 888-50EVANS (888-503-8267), or by email at <a href=”mailto:firstname.lastname@example.org”>email@example.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. 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.
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
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
Brighthouse Financial, Inc./MetLife
EquiTrust Life Insurance Company
Fidelity & Guaranty Life Insurance Company
Genworth Financial, Inc.
Genworth Life and Annuity Insurance Company
Genworth 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
Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.
Minnesota Life Insurance Company
Nationwide Investor Services Corporation (NISC)
Nationwide Life and Annuity Insurance Company
Nationwide Life Insurance Company
New York Life Insurance Company
Northwestern Mutual Investment Services, LLC
Northwestern Mutual Life Insurance Company
Northwestern Mutual Wealth Management Company
Pacific Life & Annuity Company
Pacific Life Insurance Company
Security Benefit Corporation
Security Benefit Group, Inc.
Security Benefit Life Insurance Company/Guggenheim Partners
Security Investors, LLC
Security of Denver Life Insurance Company/Voya
Transamerica Life Insurance Company
Voya Financial Advisors
Voya/Reliastar Life Insurance Company
World Financial Group Insurance Agency, Inc.
*You can access the SEC’s Indexed Annuities investor bulletin here: https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_indexedannuities.