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.
