Interest Rates On Fixed Annuities Plummeting
Do Not Be Rushed Into A Fixed Annuity
Understanding Rates Of Return On Annuities
Whenever the Dow drops, insurance agents push annuities as “safe” retirement investments. But right now interesting rates are dropping too which means annuity carriers will pay a lower interest rate on the money they will pay you in the future. Our lawyers recommend avoiding annuities of any kind, 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.
Advertised interest rates for annuities are often called teaser rates and may in fact be lower than CD rates after the annuity has begun. If, for example the teaser rate is 3%, annual administration charges and fees for income or death benefit riders of 1-1.5%, can cut the teaser rate in half from year one. The true rate of return on an annuity will not in fact be known until the contract ends. As one annuity analyst says. “There’s no way to calculate [the rate of return] until you die.” If you terminate the contract before you die, or before any payments to you begin, you may find that you have a negative return on your money.
The bottom line is that annuity carriers protect themselves in low interest rate times with surrender penalties and market value adjustments (MVAs) that decrease any withdrawals you try and make – of your own money! Once you are in an annuity contract, it will be impossible to get out for many years without a penalty. If you stay in, the fees, caps, and participation limits will cut into your return. Whatever you do, always consult a professional with nothing to gain from a sale before you buy and always consult your tax advisor because any decision regarding annuities has tax consequences.
If you or a loved one has suffered loss on the surrender, termination or transfer of an 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.