Interest Rates On Fixed Annuities Plummeting
Do Not Be Rushed Into A Fixed Annuity
Insurance agents are using the big Dow drop to push the “safety” of fixed annuities just as carriers slash interest rates on those products. It’s a no-win for consumers. Our lawyers recommend avoiding annuities of any kind, including fixed annuities, especially for seniors, because sales commissions are high, policies tie up your money for many years, and returns are routinely not as high as an agent’s promises. If you’re over 60 and live in San Francisco or anywhere 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.
Annuity companies have been cutting their rates across all fixed annuity products – some a few times in two weeks amid the crash in equity markets and Treasury yields, according to one industry analyst. At a point before the recent crash contract rates were as high as 3%, but now the average rate is just a little over 2%. If a contract has additional annual fees for income or death benefit riders of 1-1.5%, you can see how meagre the return will be. If safety is a concern, bank CDs are a safer choice. Also, keep in mind that annuities are not insured investments like bank CDs; the insurance company’s promise to pay is only as good as its word. And in all events, always consult an investment professional with nothing to gain from a sale.
Avoid Replacement or 1035 Exchange Recommendations
One saving grace for existing policyholders is that dropping interest rates will make it tougher for agents to “sell” the advantages of a replacement or tax-free 1035 exchange of existing contracts. We have cautioned policyholders on replacements and 1035 exchanges before, given the potential tax liabilities those transactions can mean. Now there’s a clear economic reason motive to avoid agent advice to replace or exchange your existing policy – offered rates on new policies are going to be much lower than rates on existing contracts. As we have written before, always consult your tax advisor before any annuity transaction – a new purchase, surrender, replacement or 1035 tax-free exchange.
If you or a loved one has suffered loss on a fixed annuity or any other annuity in California, contact Marin County, 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=”mailto:firstname.lastname@example.org”>email@example.com</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
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.