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Oct 12, 2018 by |

San Francisco and California Financial Elder Abuse, Annuities and Securities Attorneys: Deferred Annuities and Seniors

ATTORNEY NEWSLETTER

Seniors Beware of Deferred Annuities

Deferred annuities are complicated insurance policies where the policyholder pays a premium today for a series of income payments in the future. Carriers and agents sell deferred annuities with fixed interest rates, variable rates, and in policies offering fixed and variable funds. All deferred annuities pay upfront sales commissions to the producing agent or broker and all have fees and penalties for withdrawals.  The San Francisco and California financial elder abuse, annuities and securities attorneys at Evans Law Firm, Inc. advise against deferred annuities, particularly for seniors.[1]  Our attorneys litigate against agents and carriers on behalf of seniors harmed by deferred annuities.  If you or a loved one is over 60 and live in California and have been sold an inappropriate or unsuitable deferred annuity or suffered a loss from a full or partial surrender, call the California financial elder abuse, annuity and securities lawyers today at Evans Law Firm, Inc. (415)441-8669.  We can review a California senior’s contract for free and may be able to help. 

Deferred annuities are primarily sold as tax deferred retirement investments. Tax deferral is always advantage in saving for retirement but deferred annuities are not the answer. Straight IRA and 401(k) investments are also tax-deferred and are cheaper and more liquid than deferred annuities.  Deferred annuities pay big upfront commissions to agents, and carry withdrawal penalties and other fees and other charges buried in the contracts and overlooked in sales presentations.  Agents often skip the details, avoid complete explanations of how the policies work, and gloss over future fees and withdrawal penalties.  Agents may also ignore the tax consequences of withdrawals, which can be disastrous because withdrawals are taxed at ordinary income rates.

Withdrawals are also subject to surrender charges often as high as 15%. Be careful committing to these illiquid investments; if you need to withdraw your money during the surrender period (often as long as 15 years) you will pay a substantial penalty. Always remember that you already own tax deferred retirement savings in your Social Security account, IRAs, 401(k)s, and your employer’s pension plan.  If you’re considering a purchase at all, seek the advice of investment professionals without any stake in your purchase and always consult your tax advisor before making a purchase.

Contact Us

If you or a loved one is over 60 and a resident of San Francisco or anywhere else in California and have been sold an inappropriate or unsuitable variable annuity or suffered a loss on a full or partial surrender of a variable annuity, contact Ingrid M. Evans and the other San Francisco and California financial elder abuse, annuity and securities attorneys at the 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, FINRA Arbitration, or toward an equitable settlement.  We also 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,

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 National Life Insurance Company

Ameriprise Financial/RiverSource Life Insurance Company

Ameriprise Financial/Securities America, Inc.

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

Securities America, Inc./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 can represent you if you have suffered losses on annuities through a partial or full surrender including any tax losses you may have sustained.

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