Fixed Index Annuities: The Biggest Sham of All
Fixed Index Annuities
Insurance carriers like to offer products such as fixed index annuities. However, these annuities are not always the proper decision for all potential buyers. If you or someone you know has been a victim of fixed index annuity fraud that was purchased on or after June 2015 in San Mateo County or the state of California, call Evans Law Firm, Inc. today at 415-441-8669 for a free consultation and review of the policy.
Agents sell fixed indexed annuities with the pitch that the buyer will have the security of a fixed return with the upside of rising stock prices. In each year, the contract return is the greater of an annual minimum rate, or the return of the chosen stock market index, reduced by certain expenses and formulas. If the chosen index rises sufficiently during a specified period, a greater return is credited to the owner’s account for that period. If the stock market index does not rise sufficiently, or even declines, the lower minimum rate is credited (usually 0% – 2%). The owner is guaranteed to receive back at least all principal less withdrawals, provided of course that the owner has held the contract for the minimum period of time specified in the contract.
There’s the rub. Your money will be tied up for a long time and any early withdrawal will be subject to hefty surrender charges and forfeiture of the “extra” return your account was earning over the guaranteed rate. And even if you hold out to the end and refrain from early withdrawals, the fees and expenses in these accounts, together with the upfront sales commission, will erode your return significantly if not wipe it out. Bottom line is, beware. Fixed index annuities are extremely complicated, and this is just a brief overview. These products are often pushed on seniors, and if purchased in California on or after June 2015, Evans Law Firm, Inc. will review your policy for free. Call us today at 415-441-8669 if you believe you have suffered losses from fixed index annuities purchased on California.
Some of the major annuity and life insurance providers in California are:
- AXA Equitable Life Insurance
- Bankers Life Insurance and Casualty company
- EquiTrust Life Insurance Company
- Fidelity & Guaranty Life Insurance Company
- Genworth Life Insurance Company
- ING USA Annuity and Life Insurance Company
- John Hancock Life Insurance Company
- Lincoln Benefit Life Company
- Massachusetts Mutual Life Insurance Company
- Metlife/Metropolitan Life Insurance Company
- Pacific Life Insurance Company
- Transamerica Life Insurance Company
- Unum Life Insurance Company of America
- Voya/Reliastar Life Insurance Company
If you or a loved one been the victim of annuity fraud or suffered loss on an unsuitable annuity or paid surrender charges on a fixed indexed annuity or any other annuity in any California county, contact the Evans Law Firm annuity attorneys at (415) 441-8669, or by email at firstname.lastname@example.org. 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.