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Oct 13, 2020 by |

California and Marin County Financial Elder Abuse Attorney: Seniors: Learn The Facts About Deferred Annuities


Analyze Costs Before You’re Sold An Annuity

Penalties On Withdrawals

Consult With Your Tax Advisor Before Any Annuity Transaction

Whenever an agent approaches you to consider a deferred annuity, if you’re a senior think long and hard about the costs buried in annuities.  Below, we analyze costs more closely but largely annuity costs fall in two categories:  annual costs and fees and the costs/penalties incurred if you withdraw your money or surrender the policy.  The financial elder abuse attorneys at Evans Law Firm, Inc. represent senior consumers who lose money on deferred annuities due to costs, withdrawal or surrender charges, unsuitability, replacements or exchanges of existing annuities, and tax liabilities. Call us today at 415-441-8669 or toll free at (888)503-8267 if you are over age 60, live here in San Francisco or elsewhere in California, and have lost money on a deferred annuity surrender or replacement. 

The costs of deferred annuities include the following:

  • Surrender penalties.  Surrender penalties are typically assessed on any money withdrawn that is in excess of a pre-specified annual withdrawal allowance.  Penalties may be as high as 15% or more on the amount withdrawn  Surrender periods can range up to fourteen years. 
  • M&E.  Mortality and expense risk charges average about 1.12 per year.  These fees protect the insurance carrier’s risk of policyholders living longer than the actuarial tables predict – i.e., the “cost” of providing the insurance
  • Contract Fees.  Contract fees may range from $25 to $40 per year.  Ask the agent what the policy’s annual contract fee is.
  • Administrative Fees.  Administrative fees typically pay for production and mailing of account statements and other customer services.  This fee can be around .5%.
  • Subaccount Fees.  Sub-account fees are fees charged by the managers of the underlying mutual funds in an annuity.  These fees are buried in the returns on the subaccounts but average just under 1%.
  • Rider Fees.  Any special enhancement riders will add additional costs to the policy. An income rider for example normally costs 1-1.5% annually.
  • Miscellaneous Fees.  There may be other fees imposed, such as a fee for excess transfers between sub-accounts.

Fees can accumulate quickly to erode any promised return on the contract being offered you.  Press the agent for details and always get a second opinion from an investment professional with nothing to gain from a sale.  Also, remember to consult with your tax advisor before any annuity transaction because all transactions in annuities have tax consequences.

Contact Us

Ingrid M. Evans and the other Evans Law Firm financial elder abuse, annuity and life insurance attorneys  represent senior policyholders who have lost money on deferred annuities,  If you are over 60 and live here in California and have lost money on a deferred annuity call us at (415) 441-8669, or by email at <a href=””></a>.

Below is a list of the leading providers of deferred annuities in California.  This list is provided solely as a reference for our readers, and we do not mean to imply that any of the following carriers has done anything wrong.

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

Athene USA

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.

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