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Jun 7, 2017 by |

San Francisco County and California Annuity and FINRA Arbitration Attorneys: Broker Annuity Commissions

ATTORNEY NEWSLETTER

The Insatiable Appetite for Commissions

Broker Stops At Nothing For Commission Dollars

Sales commissions in the life insurance/annuity business are big. Typically, annuity commissions hover at 10% and whole life commissions much higher, at least in the first year of premium payments. In a recent case, a broker allegedly went full out for a 30% commission on a set of unsuitable annuities he sold to a young couple. The couple is now fighting back through a Financial Industry Regulatory Authority (FINRA) arbitration. If you or a loved one has purchased an unsuitable annuity or believe you paid an exaggerated commission or have been the victim of any kind of insurance, annuity or securities fraud or are headed to a FINRA Arbitration, please contact the Evans Law Firm at (415)441-8669, and we can help.

We’ve often written in these pages that annuities are complex contracts with hidden fees, commissions and charges that even the most sophisticated buyer may not spot by a cursory review of the contract. We’ve always cautioned readers to slow down, do their homework, and seek disinterested professional advice before purchasing an annuity. In the example we share today, a broker recommended a set of ten(!) complicated and confusing annuities consuming over a third of a young couple’s investment portfolio.

The only winner in a lopsided strategy like that is the broker. Remember, brokers earn commissions upfront. While they are paid in each year of a contract (another surprise in annuities), the big bucks are made when you sign up. Don’t be bullied into signing anything. Very often, the annuity (or any annuity really) may be unsuitable for you. Seniors are a particularly vulnerable target for unsuitable annuities, but as this case illustrates young couples with children are equal prey. Be careful. Always seek the advice of a professional with no skin in the game. Experience teaches that a broker eyeing a big commission is not an objective party.

Contact Us

If you or a loved one purchased an annuity, life insurance policy, or other investment contract from which you or a loved one has experienced a financial loss (beyond that of reasonable investment risk), or are headed to a FINRA Arbitration against a broker in San Francisco County or anywhere in California, contact the Evans Law Firm annuities, financial elder abuse, and fraud attorneys at (415) 441-8669, or by email at info@evanslaw.com. Our attorneys have experience with annuities, life insurance, and large insurance companies. We can help guide your case through a jury trial or 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 major annuity and life insurance providers in California are:

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