ATTORNEY NEWSLETTER
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=”mailto:info@evanslaw.com”>info@evanslaw.com</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
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.
