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

Sep 14, 2021 by |

Contra Costa County Financial Elder Abuse Attorney: Senior Citizens And Annuities


Annuities Are Complex And Expensive

Your Upside Is Limited

Expenses Add Up

Evans Law Firm, Inc. recommends against deferred annuities, including fixed indexed annuities, for older consumers based on what we have seen in our litigation experience: sales commissions and annual fees on these policies are high; the return on your money rarely meets expectations (we have seen contracts produce zero returns even in strong markets); and, by penalizing you for any withdrawal, deferred annuities effectively tie up your money for years.  Once you’re sold an annuity it is very expensive to get out.  If you want to switch investments or just access your own money when you need it, you will pay a penalty.  If you are over 60, and live in Contra Costa County,  San Francisco or elsewhere in California and have experienced an economic loss as a result of the sale of an unsuitable annuity or other investment product, including a fixed indexed annuity, call us today at 415-441-8669 (or toll free at 1-888-50EVANS) for a free review of your policy. 

Limitations on Your Return

As a way to limit returns, annuity companies often use participation rates or rate caps with indexed contracts. Here’s how they work:

  • Participation rate:Let’s say the S&P 500 grows by 10% in a year and your contract has a 60% participation rate. The annuity company will then take that 10% growth and give you 60% of it, which would equal 6%.
  • Rate cap: In this scenario, let’s assume the S&P 500 grows by 8% over a year, and your contract has a 5% rate cap. The result would be that your contract receives a 5% return, since the rate cap limits how much your contract can earn.

Also, you will not receive the benefit of reinvested dividends.  Reinvested dividends are a major driving force behind favorable returns in mutual funds and understand that you will not have this benefit in your annuity.

Expenses Can Add Up

Layers of fees obscure an annuity’s total cost and reduce how much it pays out. Before buying an annuity, it’s important to understand what you’ll have to pay for all the features you want. The following are common annuity expenses you should be aware of:

  • Mortality and expense fee
  • Administrative fee
  • Contract maintenance charge
  • Subaccount fee
  • State premium tax (2.35% in California paid by the carrier but passed on to consumers through insurance rates)
  • Investment transfer fee
  • Contingent deferred sales charge, also called a “surrender charge.”  These charges can be as high as 15% and last for years on withdrawals.
  • Principal protection
  • Inflation protection/cost-of-living adjustment
  • Long-term care rider
  • Lifetime income rider

Contact Us

If you are over 60 and live in Contra Costa County, San Francisco or elsewhere in California and have lost money on a deferred annuity or indexed universal life insurance contact 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=””></a>. Ingrid will pursue all remedies available to you against all parties responsible, including restitution (getting your money back), extra damages (to punish the fraudulent conduct) and awards of attorneys’ fees and costs to the senior forced to bring an action against the wrongdoers. 

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


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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