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Mar 26, 2022 by |

Orange County Financial Elder Abuse And Annuity Attorney: Deferred Annuities Are Unsuitable For Seniors

ATTORNEY NEWSLETTER

Seniors Targeted For Annuity Purchases

Understand The Primary Disadvantages

Always Get A Second Opinion

Evans Law Firm, Inc. recommends seniors avoid deferred annuities because deferred annuity contracts are expensive and complicated and tie up a senior’s money for years.  Often, insurance agents out to make sales claims to be “retirement planners” or advisors and host seminars and consultation sessions which are really sales presentations not neutral advice with regards to retirement planning.  High-pressure or deceptive sales tactics and sales of unsuitable annuities violate the law and constitute financial elder abuse when the targeted consumer is a senior.  Cal. Welf. & Inst. Code § 15610.30 (definition of financial elder abuse); Cal. Ins. §§ 790 et seq. (Unfair Insurance Practices Act) and 10509 (suitability requirement).  Senior victims may be entitled to damages and an award of attorneys’ fees and expenses for bringing a case.  Cal. Welf. & Inst. Code § 15657.5.  If you are over 60, live in Los Angeles, Orange County, or elsewhere in California and own a deferred annuity (such as 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. 

Leading Disadvantages of Annuities

Cost. Annuity premiums have embedded fees. The fees lower the long-term returns so that an annuity may not be as profitable as other options such as saving and investing.

Illiquid asset. Deferred annuities impose penalties on withdrawals from the policy during the period known as the surrender period.  The surrender period may last ten or more years, and the surrender charge may be as high as 15%.   Once you annuitize, you cannot change the terms of the income payments. It is possible to sell or surrender an annuity, but you’ll lose some of your invested principal in the process.

Complexity. Annuities can be complicated. It can be hard to understand what you’re getting for your premiums.  Complicated formulas for calculating your return and caps and participation rates all work in the carrier’s favor, not yours.

Taxable income payments. If you purchase an annuity with pre-tax funds, any withdrawals from your annuity are fully taxable at ordinary income tax rates. If you purchase an annuity with after-tax funds, withdrawals are partially taxable.  Always consult your tax advisor before making any transactions involving annuities, whether it’s a purchase, surrender, or exchange.

Contact Us

If you are over 60 and live in Los Angeles, Orange County or elsewhere in the State of California and have an indexed annuity, we can review your contract for free.  You can reach Ingrid M. Evans at Evans Law Firm, Inc. at (415) 441-8669, or toll free at 1-888-50EVANS or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>.

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.

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