What Is Deferred Annuity Fraud Litigation?
Deferred annuities are long term financial investments that often do not allow withdrawals sometimes, for as long as 15 years or more, and can carry exorbitant fees for early withdrawal such as surrender charges and other penalties. Additionally, contracts for financial annuities are written to be purposefully confusing making it easy for financial professionals or agents to gloss over the technical details of the various fees and charges. As a result, many senior purchasers would be unable to access funds trapped in deferred annuities – for example, to pay for medical emergencies or other financial issues – without placing risk to their principal or earned interest.
Additionally, many of these annuity products are sold on commission. Such lucrative commissions create a potential conflict of interest. For this reason, certain insurance companies as well as industry standards, recognize these products must be sold carefully, especially to persons on fixed income or limited life expectancy, such as seniors.
Unfortunately, deferred annuities are more and more commonly being sold, regardless of the consumer’s needs or without full and adequate disclosure of the products’ features, risks and costs.
Evans Law Firm, Inc is dedicated to helping victims of deferred annuity fraud through class action lawsuits brought against the various financial institutions, such as insurance companies and banks, that fraudulently sell long term investments, like deferred annuities, to senior and elder adults.
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