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.
