Understand The Drawbacks
Annuities Are Insurance Policies Not Investments
Do Not Be Rushed Into A Sale
Insurance agents use market downturns like the one we saw in March to push fixed indexed annuities as a “safe” alternative for retirement savings. Don’t let an agent sell you anything until you understand it. Our litigators recommend avoiding annuities of any kind, including fixed indexed annuities (FIAs) because we have seen too many consumers, especially seniors, hurt by these products. The costs and complicated rules for calculating value and crediting interest are designed to benefit the insurance company, not you, and the penalties for taking your money out if you need it are steep. If you’re over 60 and have suffered a loss due to cancellation, replacement, full or partial surrender, or high fees on any type of annuity, including FIAs, call the attorneys at Evans Law Firm, Inc. today at 415-441-8669 (or toll free at 1-888-50EVANS) for a free review of your policy.
Understanding FIA Values – NOT a Mutual Fund
The accumulation value of an FIA is based on a call option on a certain index (like the S&P 500), not the index itself. The option resets every year with limitations to the upside (a “cap” on your rate of return), a “spread” that covers the carrier’s costs (out of your pocket), and “participation rates” that limit your return to, say, 80-90% of the return the carrier realizes on your money. Direct investments in mutual funds do not have these caps and participation rate limitations. FIAs are not investment in stock funds and you will not see the benefits of reinvested dividends.
Commissions, Fees and Penalties Erode Returns
You will incur surrender penalties if you make withdrawals. You will also pay income tax on withdrawals at ordinary income tax rates. Even if you leave all your money in, the returns may not ever come close to what you were promised based on how long you live. Sales commissions, rider fees, and administrative fees will erode your return; fees can be 2% or more every year. You may never live to recoup anywhere near the annual costs. Every annuity transaction, whether a purchase, exchange, replacement, surrender or cancellation has tax consequences so always consult with your tax advisor before entering into any kind of annuity transaction.
If you or a loved one has suffered loss on a fixed annuity or any other annuity in California, contact Marin County, 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 toll free at 1-888-50EVANS) or by email at <ahref=”mailto:firstname.lastname@example.org”>email@example.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.
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
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.