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Nov 27, 2024 by |

California and San Francisco Annuity and Financial Elder Abuse Attorneys: Riders in Annuities

ATTORNEY NEWSLETTER

What are Riders To Annuity Contracts?

Costly With Little Benefit

Other Contract Disadvantages

Evans Law Firm, Inc. generally recommends against certain types of deferred annuities especially for seniors because these complex insurance policies carry high fees, lack transparency and are illiquid. Even more problematic for older consumers are proposed “riders” to such contracts. Riders are attachments to deferred annuities sold by life insurance agents or retirement planners or other advisors as enhanced benefits to any proposed annuity policy. Riders come with an additional fee added to your base premium. Available riders include income riders, long-term care riders, death benefit riders and other policy “enhancements.” All of these add-ons are expensive and promise benefits you may never see. Selling agents often gloss over details or deliberately conceal the way the recommended riders really work. If you are over age 60 and reside in California, the California annuity attorneys at Evans Law Firm can review your annuity contract, including any riders and the policy’s surrender provisions, for free. Call us today at (415)441-8669 or toll free at 1-888-50EVANS.

Income Riders

To understand how riders work, take, for example, so called “income riders” sold as a “guarantee” of future income levels. Older consumers are naturally concerned about future income levels so the appeal of such a supposed “guarantee” is obvious. But in reality the additional “benefit” may be illusory. First, annual fees for income riders run around 1% or more of total policy value so right off the bat there’s a hit on your return. Second, you may never see the promised benefit. These contributions sit in a separately calculated fund apart from the accumulated value of the over-all annuity. The “value” of this separate fund is never available for withdrawal. Rather, the rider offers a “guaranteed” income for life payable only on a schedule determined by the carrier. Finally, if you need to withdraw part of your investment (making a “surrender”) the benefit disappears entirely.

Other Contract Disadvantages

Annuities are extremely complex and not for everybody. Endorsements and riders are even more complex. Fees and commissions destroy returns. Annuities are illiquid investments and tie up your money for years and withdrawals for emergencies may incur steep surrender penalties; you should be positive you will not need whatever funds you commit by way of premium contributions. We understand all these drawbacks because we’ve represented senior policyholders who have lost money on these contracts.

Contact Us

If you are over 60 and live in California and have a deferred annuity or universal life insurance contract, we can review your contract for free. You can reach Ingrid M. Evans at Evans Law Firm, Inc. at (415) 441-8669, or toll free at 1-888-50EVANS or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>.
Some significant issuers and distributors of 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. 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

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

PacLife

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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"I contacted Attorney Ingrid Evans for advice about a financial elder abuse case. She was extremely knowledgeable, bright and informative. I highly recommend her. I am an attorney myself, and know when I am talking to a another excellent attorney."
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