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Mar 16, 2020 by |

California Annuity and Financial Elder Abuse Attorneys: Avoid Annuities In Retirement Plans

ATTORNEY NEWSLETTER

Resist The Annuities Sales Pitch

Annuities Are Unsuitable Retirement Investments

SECURE Act Will Not Protect Consumers

The lawyers at Evans Law Firm, Inc. recommend against annuities especially for seniors, because commissions, fees and surrender penalties reduce returns and make it expensive to get your money out if you need it. Recent changes to federal law governing retirement investments are not as helpful for consumers and more restrictive of choices available to them. Under the Setting Every Community Up for Retirement (SECURE) Act, H.R. 1994, enacted in December, carriers and agents will now be able to sell annuities directly to 401k and pension plan sponsors.  Other provisions adversely affect consumers, especially seniors, by (1) removing a fiduciary requirement of only recommending sales in the consumer’s best interests and (2) requiring beneficiaries of inherited accounts to withdraw (and pay tax on) all funds within 10 years following the accountholder’s death.  Our litigators represent consumers, especially seniors, who suffer losses on any surrender, cancellation or exchange of any annuity.   If you’re over 60 and live in California and have suffered a loss due to cancellation, replacement, full or partial surrender, or high fees on any type of annuity, call the California financial elder abuse and annuity attorneys at Evans Law Firm, Inc. today at 415-441-8669 or toll free at 1-888-50EVANS (888-503-8267) for a free review of your policy.  A list of major carriers in California appears below.

Here are just a few of the general reasons annuities are not retirement investments:

  • The commissions are high. You already have one annuity in the form of Social Security which pays no commissions and is indexed for inflation. Sales commissions on annuities are high and it takes a long time to recoup that money.
  • Withdrawal charges/surrender fees lock you in for six to seven years, and maybe even longer. This can hit older policyholders especially hard if they need to withdraw money for a medical emergency or other unexpected expense.
  • Especially today, interest rates are low, which means the cost of buying that guaranteed income is particularly high. You have a long time to live. Interest rates will change and you may be locked into a low-interest rate annuity that will not cover your future income needs.
  • There are other options including actual bonds, cash and a mix of investments also generate a steady income stream and do not generate high commissions for sellers or impose withdrawal penalties if you need to take your money out.

Whatever you do, get second opinions from a professional investment advisor with nothing to gain from a sale or the addition of an annuity to your retirement plan. Whether it’s a banker, insurance agent, or financial advisor recommending an annuity to you, also always consult your tax advisor before any purchase or surrender.

Contact Us

If you or a loved one has suffered loss on an annuity in California, contact San Francisco and California annuity and financial elder abuse attorney Ingrid M. Evans and the other attorneys at Evans Law Firm at (415) 441-8669, or toll free at 1-888-50EVANS (888-503-8267) or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. 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

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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