415-441-8669 | TOLL FREE: 888-50EVANS

Nov 13, 2018 by |

Contra Costa County and California Annuity and Financial Elder Abuse Attorneys: Fixed Indexed Annuities

ATTORNEY NEWSLETTER

Beware Fixed Index Annuities

Phantom Bonuses

With over $200 billion in annual sales the annuity industry is big business. Annuities come in a variety of forms, all of which are complex.  Indexed annuities (sometimes branded “fixed indexed annuities”) are particularly complex.  Agents push them in volatile markets, claiming the contracts offer the upside of market increases (the “indexed” part) with downside protection (the “fixed” part) but glossing over fees, risks and downsides.  Our lawyers recommend avoiding deferred annuities of any kind, including fixed indexed annuities, especially for seniors.[1]  At a minimum, take a close look before you buy. If you’re over 60 and already purchased a contract here in California and have suffered a loss due to cancellation, replacement, full or partial surrender or high fees, call the California financial elder abuse and annuity attorneys at Evans Law Firm, Inc. today at 415-441-8669 for a free review of your policy.  A list of major carriers in California appears below.

A lot of the sales pitch will be packaged around “bonuses” the policies offer which make the returns look impressive on paper. Promised “bonuses” include premium and interest bonuses.  An agent may claim, for example, that a contract’s interest bonus will push a 6% return up to 9%.  Great claim, but false in reality.  True contract returns are more like 1-3% (or less) after fees so any “bonus” is more like 0.5-1.5%.  And there’s more.  In order to receive any extra, the policyholder must keep the annuity in deferral for at least 10 years, refrain from any withdrawals, and select among a limited range of income options. 

That’s what makes these contracts so risky, especially for seniors. Your money will be tied up for a long time, subject to hidden fees and expense increases, and any early withdrawal will be subject to charges and forfeiture of any “extra” return in your account.  (Withdrawals will also be subject to tax at ordinary rates.) Even if you hold out to the end and refrain from early withdrawals, commissions and other fees erode your return. Bottom line is, beware. Fixed index annuities are extremely complicated, and this is just a brief overview.  Always consult a qualified professional who does not stand to gain from any purchase and your tax advisor before making any purchase, replacement or surrender. 

Contact Us

If you or a loved one has suffered loss on a fixed indexed annuity or any other annuity in California, contact Contra Costa County and California annuity and financial elder abuse attorney Ingrid M. Evans and the other attorneys at Evans Law Firm at (415) 441-8669, 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 National Life Insurance Company

Ameriprise Financial/RiverSource Life Insurance Company

Ameriprise Financial/Securities America, Inc.

Athene Annuity & life Assurance Company

Athene Annuity and Life Company

Athene USA

Aviva Life Insurance Company

AXA Equitable Life Insurance Company/AXA US

Bankers Life Insurance and Casualty Company

Brighthouse Financial, Inc./MetLife

Citigroup Global Markets, Inc.

Crump Life Insurance Services, Inc.

CUNA Mutual Group/CMFG Life Insurance Company

EquiTrust Life Insurance Company

Fidelity & Guaranty Life Insurance Company

Forethought Life Insurance Company/Global Atlantic Financial Group

Genworth Life Insurance Company

Global Atlantic Financial Group/Forethought Life Insurance Company

Guardian Life Insurance Company

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

Merrill Lynch Life Agency Inc.

Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.

National Western Life Insurance Company

Nationwide Life Insurance Company

New York Life Insurance Company

North American Company for Life and Health Insurance

Northwestern Mutual Life Insurance Company

Oxford Life Insurance Company

Pacific Life Insurance Company

Principal Financial Group

Prudential Life Insurance Company

Raymond James Insurance Group

RiverSource Life Insurance Company/Ameriprise Financial

Securities America, Inc./Ameriprise Financial

Security Benefit Life Insurance Company/Guggenheim Partners

Symetra Life Insurance Company

Transamerica Life Insurance Company

Unum Life Insurance Company of America

Voya/Reliastar Life Insurance Company

Wells Fargo Advisors

World Financial Group Insurance Agency, Inc.

[1] We do not provide investment or tax advice but our litigators represent senior policyholders who lose money through cancellations, surrenders or fees on these contracts.

Million Dollar Advocates Forum SuperLawyers Badge Best Lawyers Badge Avvo Lawyer Badge

Our Passion For Justice

415-441-8669 888-50EVANS

Hear What Our Clients Have To Say

"I highly recommend Ingrid and her law firm. If you are looking for an attorney who is a great listener, a compassionate advocate and who really knows the law, this should be your first stop."