ATTORNEY NEWSLETTER
Life Insurance Churning
Millions of older Americans have whole life insurance policies with accumulated cash value. Typically, they were sold those policies when they were much younger as a tax deferred savings vehicle, passing the accumulation on to their children when they died. Some insurance agents spot these senior policyholders and try and convince them to surrender their policies and replace them with new policies. The practice is known as “churning” or “twisting” your policy. The sales pitch is typically that the policyholder can increase the amount of life insurance protection with no increased cost of insurance and without the payment of additional premiums. Be extremely wary of such a recommendation. As explained below, churning or twisting of your policy can result in substantial financial loss for you and your family and possible tax penalties.
The Alameda County and California insurance and financial elder abuse attorneys at Evans Law Firm, Inc. represent senior victims who have lost money due to churning or twisting of life insurance policies or annuities by insurance agents and carriers. Such losing transactions for seniors constitute financial elder abuse. Our financial elder abuse lawyers pursue all remedies available against all parties responsible for victimizing seniors under the California Elder Abuse and Dependent Adult Civil Protection Act and other statutes designed to protect California seniors from financial elder abuse. If you or someone you know is the victim of financial elder abuse in San Francisco or elsewhere in California, call Evans Law Firm today at 415-441-8669.
What an insurance agent may not tell you when recommending a replacement of an existing policy is that the cash value of the new policy will be less than the old and will require significant additional premiums in a few years in order to stay in force. And if that does not dissuade you, consider also that you may end up with a tax bill on the transaction. While money grows tax-deferred in life insurance policies, withdrawals and surrenders are taxed at ordinary rates. Always consult your tax advisor when considering any policy surrender or replacement.[1]
Contact Us
If you or a loved one been the victim of financial elder abuse or securities fraud whether in Alameda County or anywhere in else California, contact California financial elder abuse attorney Ingrid Evans and the other Evans Law Firm financial elder abuse attorneys at (415) 441-8669, or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Our attorneys have experience with all types of financial elder abuse, investment and securities fraud and annuity fraud. We can help guide your case through a bench or jury trial, through mediation or arbitration, including FINRA arbitration if required, 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.
Some of the 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.
Accordia Life and Annuity Company/Global Atlantic Financial Group
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] While we do not offer tax or investment advice, we do represent clients who have lost money due to taxation of churns and twists or other botched life insurance or annuity replacements.
