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Feb 19, 2020 by |

San Francisco and California Annuity and Financial Elder Abuse Attorneys: Disadvantages of Fixed Index Annuities


Avoid The Hype on Fixed Index Annuities

Insurance Not Investment

Fixed index annuities (FIAs) are sold by agents as “safe” market return products. Don’t buy it. Our lawyers recommend avoiding annuities of any kind, including fixed index annuities, especially for seniors. Fixed index annuities, like all annuities, are life insurance products, not securities. The policies have complicated rules for calculating value and crediting interest.  Sizeable surrender penalties make it expensive to get out once you’re in.  If you’re over 60 and live in California 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. A list of major carriers in California appears below.

Understanding FIA Values

The accumulation value of an FIA is based on a call option on a certain index (like the S&P 500). The option resets every year and there are limitations to the upside growth using industry terms like “caps” and “spread” and “participation rates.”  FIAs are not investment in stocks or even in the index fund itself; you are not credited with the dividends paid on any stock including in the selected index. You will incur surrender penalties if you make withdrawals during the surrender period which under some policies may last ten or more years.  You will also pay income tax on withdrawals at ordinary income tax rates.

Commissions, Fees and Penalties Erode Returns

Even if you leave all your money in, the returns may not ever come close to what you were promised based on how long you live. Large upfront commissions and administrative fees will erode any real return.  If the agent sells you an “income rider” guaranteeing (theoretically) a future rate of income, the annual fee for that rider will further erode your return.  You may never live to recoup anywhere near the annual costs.  Finally, keep in mind that annuities are not insured investments like bank accounts and the insurance carrier’s promise to pay benefits is only as good as the carrier’s financial ability to do so.

Contact Us

If you or a loved one has suffered loss on a fixed index annuity or any other annuity in California, contact San Francisco and California annuity and financial elder abuse attorney Ingrid M. Evans and the other attorneys at Evans Law Firm at (415) 441-8669 (or toll free at 1-888-50EVANS) or by email at <ahref=””></a>. Our attorneys have experience with complex financial contracts and large insurance companies.  We can help guide your case through a jury trial or toward an equitable settlement.  We handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.

Annuities and life insurance produce large sales commissions for brokers but are often inappropriate products for consumers, especially seniors. Leading providers and distributors of life insurance and 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.  Rather, 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


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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"We contacted Evans Law Firm when we were unable to collect on a Long-Term Life Insurance policy for an elderly family member. Ingrid responded almost immediately with an offer of a free consultation. I was immediately impressed with her passion for justice!!"
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