ATTORNEY NEWSLETTER
Guggenheim Partners/Security Benefit Total Value Annuities (TVAs)
The life insurance and annuity attorneys at Evans Law Firm Inc. represent clients who have suffered losses on all types of life insurance and annuity contracts, including indexed annuities. Indexed annuities are hybrid annuities that offer both a minimum fixed rate of interest and an interest rate tied to the movement of a market index. Security Benefit issues indexed annuities, and the Evans Law Firm annuity attorneys want to share some observations on surrender charges and other provisions under those complex products. Security Benefit is owned by Guggenheim Partners, a privately held financial services firm. If you or a loved one is a California resident who purchased a Guggenheim Partners/Security Benefit annuity in the last four years call the annuity lawyers today at Evans Law Firm, Inc. (415) 441-8669 for a free evaluation of your particular policy.
Surrender Charges and Results
Guggenheim Partners and Security Benefit offer Total Value Annuities with two interest crediting options: The Transparent Value Blended Index Account (TVBI) and the Annuity Linked TVI Index Account (ALTVI). The TVBI and ALTVI products carry surrender charges on withdrawals during the first ten years of the policy. For the first five of those years, surrender penalties are over 10%. During that same period, the real rate of return you earn may or may not live up to the hype. First, these products are a blend of stocks and bonds so don’t expect stock market returns. Second, these are 5-year indexed accounts with annual spreads subtracted from your returns. The spread can rise to 5% so that on an historical return of 6.79% you are left with just 1.79%. Any withdrawals during the five-year period are subject to surrender charges and affect your vesting into the account’s growth. If you purchased a Guggenheim Partners/Security Benefit annuity in California within the last four years, call Evans Law Firm Inc. today at 415-441-8669 for a free review of your particular policy.
These Guggenheim Partners/Security Benefit products are complex and fees and charges may erode returns. Salesmen may present only theoretical illustrations of returns. Look closely at the sales material and review the illustrations and everything else you’re given with a qualified professional who does not stand to receive a commission on your purchase. Sales commissions are paid out up front, and it takes a long time to recoup that money, if ever. Spreads and other charges may increase over the life of the policy so that actual returns may be less than advertised. Remember also that these products are essentially illiquid for up to ten years. Surrender penalties exceed 10% in the early years of the policy. Unless you are positive you will not need access to these funds, annuities are not for you. Finally, remember that annuities are not a guaranteed investment by the FDIC, SIPC or any other federal agency. They are only backed by the ability of the issuing insurance company’s ability to pay.
Contact Us
If you or a loved one purchased a Guggenheim Partners/Security Benefit annuity within the last four years, contact Ingrid Evans and the other annuity attorneys at Evans Law Firm for a free evaluation of your policy 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 including life insurance and annuity contracts. We can help guide any litigation through a jury trial 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.
