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Feb 20, 2020 by |

Marin and California Annuity and Financial Elder Abuse Attorneys: Think Before Converting CDs Into Annuities

ATTORNEY NEWSLETTER

Avoid The Push Toward Annuities

Insurance Agents and Banks Earn Commissions on Sales

Annuities Impose Withdrawal Penalties And Hidden Fees

Watch out if your banker, an insurance agent or financial advisor recommends you convert a maturing CD into an annuity. 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. 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 for a free review of your policy. A list of major carriers in California appears below.

Be wary of advertised interest rates on annuities that may tempt you to buy into them. Insurers/insurance companies use teaser rates to pique your interest in annuities.  In one recent example we saw, the initial interest rate on a fixed annuity was 1.5%.  By the second year of the policy, the real return was -1.0% after fees.  Direct investments in stocks and bonds, mutual funds, or bank CDs historically outpace that return and withdrawals are not subject to penalties.

If you switch to an annuity issued by an insurance company, your money is no longer with a bank and no longer covered by FDIC insurance. Surveys indicate that in many cases, older persons believe that money invested in an annuity is still with the bank or credit union. It isn’t.  Not only is the deposit insurance protection gone, but older persons should expect surrender fees when they withdraw money from an annuity.  If they need money for an emergency or increased long-term care costs they’ll pay a withdrawal penalty and a tax on the amount withdrawn, typically at ordinary rates. Whether it’s a banker , insurance agent, or financial advisor recommending an annuity to you, always consult a professional with nothing to gain from a sale and always consult your tax advisor before any purchase or surrender of an annuity.

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 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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