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Oct 9, 2013 by |

Principal Life Insurance Company Deferred Annuities

Deferred annuity insurance policies often target senior citizens for their sale. Companies, such as Principal Life Insurance Company, offer deferred annuities that give the individual peace of mind that they have invested a portion of their funds into a life insurance policy, to care for the people they leave behind—a spouse, children, or grandchildren, as well as to cover any final expenses, such as a mortgage, rental payment, funeral costs, or outstanding loans. Financial elder abuse attorneys in California urge consumers to be wary of what they are purchasing, and to discuss their options before agreeing to a long-term contract with an insurance company – including those offering to sell deferred fixed and indexed annuities.

With the purchase of deferred annuities, a consumer can put off paying taxes on the amount he invests until he receives his first payment from his policy, such as those sold by Principal Life Insurance Company.  He or she can also receive payments for the rest of his life, with particular options put in place to increase payments and interest accrual. Fixed annuities ensure that the policyholder will continue to receive a steady amount, and these funds can supplement a retirement income, and may even take care of unexpected expenses like medical bills or relocation costs.

However, senior citizens are particularly susceptible to fraudulent and unethical deferred annuity offers, because insurance agencies have high quotas to meet each month in their annuity policy sales. People aged 60 and older are prime targets for insurance companies to sell these annuity policies because they usually have accumulated retirement savings, and are often considering their options for life insurance as they retire and begin to plan for their futures.

,Insurance companies do not always have enough information to find annuity policies that are tailored to their consumers’ needs. Elderly clients are specifically at risk here—many deferred annuities have long-term contracts, with payouts starting several years after the initial purchase. An older client runs the risk of his policy outliving him, and receiving little or none of his deferred payments before his death. Advanced mental or physical diseases may also make elderly consumers vulnerable to sales pitches, in which salespeople may ask leading questions about plans for caring for loved ones after their deaths.

Older citizens with an annuity plan already in place should be wary of companies trying to talk them into purchasing additional life insurance coverage, elder financial abuse lawyers in California say. Extra policies often do not increase total coverage, but rather overlap, and drain a person’s retirement funds until they cannot support themselves in day-to-day living. Senior citizens who do not have a life insurance policy should explore every option available to them, and analyze their needs and responsibilities to determine which policy is best for them. In these cases, an expert opinion from an attorney or trusted financial advisor is invaluable.

Principal Life Insurance Company is   a life insurance company that sells deferred annuity policiesr. If you have recently purchased a deferred annuity policy – either fixed or equity indexed – or life insurance policy with this company, or other life insurance company, contact a financial elder abuse attorney at the Evans Law Firm to determine if you have selected a suitable plan for you or your loved ones.  Evans Law Firm, Inc. offers free consultations.


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