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Jun 20, 2018 by |

San Francisco and California Annuities and Securities Attorneys: Variable Annuities

ATTORNEY NEWSLETTER

A Closer Look At Variable Annuities

Variable annuities are complex annuity contracts with securities and insurance features. Returns on variable annuities fluctuate with the market making these complicated contracts especially dangerous for seniors. The complexity and confusion surrounding the terms of variable annuities can lead to questionable sales practices; your agent may fail to disclose risks, fees, contract charges, and the effect of surrenders on policy benefits.  The Obama Administration promulgated rules meant to protect consumers against deceptive sales practices and conflicts of interest but under industry pressure the current administration is posed to roll back these protections. 

The San Francisco and California annuities and securities attorneys at Evans Law Firm, Inc. litigate on behalf of clients harmed by these volatile policies and do not recommend them, especially for senior consumers.[1]  If you or a loved one is over 60 and live in California and have been sold an inappropriate or unsuitable variable annuity or suffered a loss from a full or partial surrender of a variable annuity contract, call the California annuity and securities lawyers today at Evans Law Firm, Inc. (415)441-8669 and we may be able to help. 

What To Watch Out For With Variable Annuities

The Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission (SEC) both regulate sales of variable annuities. Variable annuities are sold by prospectus, which are required by SEC rules to describe risk factors, fees, and surrender charges that may apply. Variable annuities are illiquid, long-term investment vehicles and are not suitable for short-term savings goals or for the portfolios of many investors, especially seniors. These long-term contracts take years to maturity.  In the interim, investment return and principal value will fluctuate, and you may experience a gain or a loss when money is withdrawn.  If you are within the surrender period you will also pay a surrender charge which may run as high as 15%.

Variable annuities are sold as tax deferred investments so the tax implications of these contracts are extremely important. Always consult your tax advisor with respect to any purchase, surrender or replacement of a variable annuity. Amounts withdrawn are subject to taxation at ordinary income tax rates.  Withdrawals may also be subject to surrender charges and reduce the value of the death benefit and any optional benefits your agent has sold you.  Be careful committing to these illiquid investments. Depending on your age, it may be many years before you can access your money penalty-free.  Seek out 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 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 California annuity and securities attorney Ingrid Evans and the other 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, variable, and fixed annuities.

Some of the leading providers 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

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

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

World Financial Group Insurance Agency, Inc.

[1] We do not provide investment or tax advise but can represent you if you have suffered losses on a partial or full surrender including any tax losses you may have sustained.

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