How Can I Avoid Annuities Fraud?
As individuals age, some of them may make the decision to buy annuities. Annuities are often sold with the promise they will provide you with a fixed income so you don’t have to worry about running out of money. Unfortunately, many annuities are actually bad financial products that have hidden costs and fees or that otherwise create problems for their purchasers. Annuities are also marketed frequently to people for whom they aren’t a good investment, largely so brokers can earn big commissions.
Annuities fraud can come at a big cost to an investor who buys an annuity, especially if a senior sinks a large amount of money into a product that isn’t right for them or does not pay as promised. Nevertheless, if you fall victim to annuities fraud, you have legal options. If you are over age 60 and live in California, please reach out to a California financial elder abuse attorney at Evans Law Firm, Inc. as soon as possible. Attorney Ingrid Evans and her team have provided representation in individual cases and class actions against insurers offering annuities, brokers selling these products and others responsible for getting bad annuities into the hands of buyers who are harmed by them.
Handling annuities fraud cases can be difficult because of the complexities of the rules and regulations and the difficulties in proving that buyers were defrauded. Evans Law Firm has had great success in annuities fraud cases and we have stood up for our clients against some of the biggest annuity providers in the business to get them compensation for damages. To find out more about how our firm can help you pursue legal remedies if you were a victim of fraud, give us a call today.
How Do You Protect Yourself From Annuities Fraud?
Avoiding annuities fraud is difficult because agents are often aggressive at trying to push policies that sound like good investments. To protect yourself:
- Read the terms and conditions carefully and look for potential penalties: One common type of annuities fraud involves agents pushing policies on elderly clients that the clients would have to hold for a decade or longer in order to avoid a penalty. These annuities are often worthless to the buyer.
- Watch out for agents who try to get you to trade one annuity for another: Agents may engage in “churning,” which involves trying to earn high commissions by getting you to switch from one annuity to another. There’s typically no benefit to you if you make the switch, but the agent gets a big commission.
- Check the reputation of the insurer: There have been cases where fake annuities were sold by insurers or where annuities were sold by companies with no intention of paying out on the investment. Carefully research the insurer offering the annuity to find out if they have a solid reputation and are licensed by the state. Annuities are not insured by the FDIC or SIPC.
These are just a few of many ways you can try to avoid annuities fraud. Unfortunately, no matter how careful you are, you could be victimized by unscrupulous insurers or agents. If this happens to you, reach out to Evans Law Firm, Inc. for help fighting for a legal remedy to recover from your losses. Contact us today, as our legal team is here and ready to help you.