ATTORNEY NEWSLETTER
Resist The Annuities Sales Pitch
Annuities Are Unsuitable Retirement Investments
SECURE Act Will Not Protect Consumers
The lawyers at Evans Law Firm, Inc. recommend against annuities especially for seniors, because commissions, fees and surrender penalties reduce returns and make it expensive to get your money out if you need it. Recent changes to federal law governing retirement investments are not as helpful for consumers and more restrictive of choices available to them. Under the Setting Every Community Up for Retirement (SECURE) Act, H.R. 1994, enacted in December, carriers and agents will now be able to sell annuities directly to 401k and pension plan sponsors. Other provisions adversely affect consumers, especially seniors, by (1) removing a fiduciary requirement of only recommending sales in the consumer’s best interests and (2) requiring beneficiaries of inherited accounts to withdraw (and pay tax on) all funds within 10 years following the accountholder’s death. Our litigators represent consumers, especially seniors, who suffer losses on any surrender, cancellation or exchange of any annuity. If you’re over 60 and live in California and have suffered a loss due to cancellation, replacement, full or partial surrender, or high fees on any type of annuity, call the California financial elder abuse and annuity attorneys at Evans Law Firm, Inc. today at 415-441-8669 or toll free at 1-888-50EVANS (888-503-8267) for a free review of your policy. A list of major carriers in California appears below.
Here are just a few of the general reasons annuities are not retirement investments:
- The commissions are high. You already have one annuity in the form of Social Security which pays no commissions and is indexed for inflation. Sales commissions on annuities are high and it takes a long time to recoup that money.
- Withdrawal charges/surrender fees lock you in for six to seven years, and maybe even longer. This can hit older policyholders especially hard if they need to withdraw money for a medical emergency or other unexpected expense.
- Especially today, interest rates are low, which means the cost of buying that guaranteed income is particularly high. You have a long time to live. Interest rates will change and you may be locked into a low-interest rate annuity that will not cover your future income needs.
- There are other options including actual bonds, cash and a mix of investments also generate a steady income stream and do not generate high commissions for sellers or impose withdrawal penalties if you need to take your money out.
Whatever you do, get second opinions from a professional investment advisor with nothing to gain from a sale or the addition of an annuity to your retirement plan. Whether it’s a banker, insurance agent, or financial advisor recommending an annuity to you, also always consult your tax advisor before any purchase or surrender.
Contact Us
If you or a loved one has suffered loss on an annuity in California, contact 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 toll free at 1-888-50EVANS (888-503-8267) 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.
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 International Group, Inc. (AIG)
American National Life Insurance Company
Athene Annuity & Life Assurance Company
Athene Annuity and Life Company
Athene USA
Aviva Life Insurance Company
AXA Equitable Financial Services, LLC
AXA Equitable Life Insurance Company/AXA US
AXA Advisors, LLC
Brighthouse Financial, Inc./MetLife
EquiTrust Life Insurance Company
Fidelity & Guaranty Life Insurance Company
Genworth Financial, Inc.
Genworth Life and Annuity Insurance Company
Genworth Life Insurance Company
Guggenheim Partners, LLC
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
Lincoln Financial Group
Massachusetts Mutual Life Insurance Company
Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.
Minnesota Life Insurance Company
Nationwide Investor Services Corporation (NISC)
Nationwide Life and Annuity Insurance Company
Nationwide Life Insurance Company
New York Life Insurance Company
Northwestern Mutual Investment Services, LLC
Northwestern Mutual Life Insurance Company
Northwestern Mutual Wealth Management Company
Pacific Life & Annuity Company
Pacific Life Insurance Company
PacLife
Security Benefit Corporation
Security Benefit Group, Inc.
Security Benefit Life Insurance Company/Guggenheim Partners
Security Investors, LLC
Security of Denver Life Insurance Company/Voya
Transamerica Life Insurance Company
Voya Financial Advisors
Voya/Reliastar Life Insurance Company
World Financial Group Insurance Agency, Inc.
