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Oct 30, 2021 by |

Napa County Financial Elder Abuse Attorney: Disadvantages Of Deferred Annuities For Seniors


Agents Target Seniors With Unsuitable Deferred Annuities

Withdrawal Penalties And Taxes On Surrenders

Avoid Expensive Exchanges Or Switches Of Policies

Agents push deferred annuities for senior consumers because sales generate substantial commissions.  Evans Law Firm, Inc. recommends seniors avoid deferred annuities, based on years of representing older consumers who lost money as the result of those high sales commissions, contract fees, rider fees, low returns and withdrawal penalties and taxes on surrenders.  Sales, exchanges, and agent recommendations for surrenders may all constitute financial elder abuse under Cal. Welf. & Inst. Code § 15610.30.  If you are over 60, and live in Napa County 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. 

Understand Deferred Annuities Before An Agent Sells You One

Any senior consumer approached by an agent with a proposal to buy a deferred annuity should consider the following:

  • Understand the complexity of these products. Indexed annuities, offered by agents most frequently, are complicated insurance policies, not straight fund investments.  When you are sold an indexed annuity, you are NOT investing in the index; you are paying an insurance premium.
  • Surrender or withdrawal penalties can last anywhere from 5-15 years and be as high as 15% on withdrawing your own money.
  • Your return on an indexed annuity will be capped at a rate lower than the actual return on the chosen index. Your return will also be subject to a “participation rate” that limits any return to 80-90% of an index return.
  • Annual administrative and subaccount fees will further erode your return.
  • Any policy “enhancements” like death benefits or income guarantees will incur rider fees that will further diminish returns,
  • Annuities are insurance products and not bank investments insured by the FDIC – even if it’s a bank selling you the indexed annuities. They are not insured like CDs.
  • Dividends on the stocks in your chosen index are excluded from calculating your gain. Any direct investment in the selected fund, on the other hand, would benefit from reinvested dividends.

How Evans Law Firm Can Help You

We have years of experience representing senior policyholders who have lost money on surrenders, cancellations, replacements or exchanges of indexed annuities or as a result of the fees or penalties imposed under the contracts.  We do not provide investment advice or tax advice and urge you always to seek a second opinion from an investment professional and consult your tax advisor before letting an agent sell you any type of deferred annuity, including an indexed contract.  If you have already purchased a policy, and experienced a financial loss as a senior that’s where our attorneys may be able to help.

Contact Us

If you are over 60 and live in Napa County, San Francisco or elsewhere in the Bay Area or throughout California and have lost money on a deferred annuity contact Ingrid M. Evans at Evans Law Firm, Inc. at (415) 441-8669 (or toll free at 1-888-50EVANS), or by email at <ahref=””></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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