Fall Of Annuity Interest Rates Continues
Reassess The Viability Of Annuities
Avoid Getting Stuck In An Annuity
Annuity interest rates have been in a freefall in 2020, and there are no signs ahead of any correction. Collapsing annuity interest rates translate into collapsing monthly payouts when contracts begin paying out benefits. Older persons are especially hard hit; annuity payout levels by some industry estimates are less than half the amounts paid out in the 1990s. The annuity and financial elder abuse attorneys at Evans Law Firm, Inc. can represent you if you’re over 60 and have suffered a loss due to cancellation, replacement, full or partial surrender, or high fees on any type of annuity, call the annuity attorneys at Evans Law Firm, Inc. today at 415-441-8669 (or toll free at 1-888-50EVANS) for a free review of your policy.
What Lower Interest Rates Mean For You
As one financial advisor recently put it, with interest rates falling near zero there is no upside to considering annuities for retirement: “You’re locking away your money and you’re not getting any return.” Dropping interest rates is not the only reason to be wary of deferred annuities. Sales commissions and annual fees further erode your return and surrender penalties are imposed if you need your money back. These surrender penalties can run as high as 15% and may be imposed for ten years or more under some contracts. If interest rates were to climb back up, any move out of your annuity would cost you. In short, getting out of annuity is a lot costlier than getting in one.
If an agent recommends you replace an existing annuity be wary. First, the clock on surrender penalties will be reset. If, for example, you have two years to go under the surrender period of your old contract, your new policy will take you back to year one and you might now face another ten years before you can withdraw your money penalty-free. Further, the surrender of your existing policy may incur a tax bill. Always consult your tax advisor before any annuity transaction because every annuity transaction has tax consequences.
Ingrid M. Evans and the other annuity and financial elder abuse attorneys at Evans Law Firm represent persons over age 60 who have lost money as the result of an annuity transaction or surrender. You can reach Ingrid and the other Evans Law Firm attorneys at (415) 441-8669 (or toll free at 1-888-50EVANS) or by email at <ahref=”mailto:firstname.lastname@example.org”>email@example.com</a>..
Leading California providers and distributors of fixed, variable and fixed indexed deferred annuities 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
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.