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Sep 14, 2018 by |

San Francisco and California Annuity and Financial Elder Abuse Attorneys: Investor Trouble With Annuities

ATTORNEY NEWSLETTER

How You Can Lose Money On Annuities 

Investors, especially seniors, can get into real trouble investing in annuities. Annuities are expensive, complex long-term insurance products that tie up your money for years.  If you need your money for an emergency or increased living expenses, you’ll pay a penalty for withdrawals. The San Francisco and California annuity attorneys at Evans Law Firm, Inc. recommend against these products, especially for those over 60.[1]  At a minimum, take a close look before you buy.  If you’re over 60 and already purchased an annuity contract here in California and have suffered a loss due to cancellation, surrender or high fees, call the San Francisco and California annuity attorneys at Evans Law Firm, Inc. today at 415-441-8669 for a free review of your policy.

From the start, you’ll pay a big commission when you’re sold an annuity. While brokers typically earn a 2-3% commission when they sell a mutual fund, annuities and whole life insurance pay sales commissions of 7-10% upfront and a trailer fee over time even though the broker is not managing the money invested.  The money that is invested in annuities is subject to annual subaccount fees by the fund managers who do manage the money.  In addition to commissions and fees, policyholders will pay sizeable penalties for withdrawals known as a surrender charges or penalties.

Those surrender charges can run as high as 15% in the first years of the contract. Withdrawals may also reduce other benefits you were promised. And there are substantial tax considerations too.  Your withdrawals and surrenders may be subject to tax at ordinary income tax rates (as opposed to more favorable capital gains treatment).  Always consult your tax advisor before making any purchase or any subsequent withdrawal or surrender. 

Contact Us

If you or a loved one has suffered loss on an annuity in California, contact the 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 by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.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.

Leading providers and distributors of life insurance and 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 National Life Insurance Company

Ameriprise Financial/RiverSource Life Insurance Company

Athene Annuity & life Assurance Company

Athene Annuity and Life Company

Athene USA

Aviva Life Insurance Company

AXA Equitable Life Insurance Company/AXA US

Bankers Life Insurance and Casualty Company

Brighthouse Financial, Inc./MetLife

Citigroup Global Markets, Inc.

Crump Life Insurance Services, Inc.

CUNA Mutual Group/CMFG Life Insurance Company

EquiTrust Life Insurance Company

Fidelity & Guaranty Life Insurance Company

Forethought Life Insurance Company/Global Atlantic Financial Group

Genworth Life Insurance Company

Global Atlantic Financial Group/Forethought Life Insurance Company

Guardian Life Insurance Company

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

Massachusetts Mutual Life Insurance Company

Merrill Lynch Life Agency Inc.

Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.

Nationwide Life Insurance Company

New York Life Insurance Company

Northwestern Mutual Life Insurance Company

Pacific Life Insurance Company

Principal Financial Group

Prudential Life Insurance Company

Raymond James Insurance Group

RiverSource Life Insurance Company/Ameriprise Financial

Security Benefit Life Insurance Company/Guggenheim Partners

Symetra Life Insurance Company

Transamerica Life Insurance Company

 Unum Life Insurance Company of America

  Voya/Reliastar Life Insurance Company

Wells Fargo Advisors

World Financial Group Insurance Agency, Inc.

[1] We do not provide investment or tax advice but our litigators represent senior policyholders who lose money through cancellations, surrenders, or fees on these contracts.

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