Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Many older Americans look to variable annuities as a way to retain a steady stream of income with better rates of returns than municipal bonds and a reputed lower risk profile than stocks. However, it is becoming increasingly clear that the use of a bonus annuity can cause significant problems.
Bonus annuities work a lot like an employer match for a 401(k) retirement account. The investor pays premiums or lump sum and the financial service firm or insurance company chips in several percent. While that sounds like a win-win, even the Securities and Exchange Commission has issued warnings about the risks that include surrender charges and additional expenses.
Surrender charges are a common way for banks and advisers to hold onto their money. You usually have to wait for several years before you can cash out the entire annuity, although you may be able to make smaller withdrawals on an annual basis. The surrender charge can significantly outweigh the percentage charge offered with these bonus annuities, according to annuity fraud lawsuit lawyers.
By making seniors wait longer, unexpected medical problems or other budget constraints can lead to a much-decreased value on this supposedly beneficial investment. Even worse, some have higher administration percentages that because of compound growth cause the value of an annuity to grow at a much lower rate. So is it an annuity scam?
It depends. Annuity fraud lawsuit lawyers note that it depends on whether or not seniors receive the proper disclosures regarding any expenses and increases in the time before surrender charges are no longer required. In addition, seniors may benefit from adult children reviewing a number of their options or with the help of a financial adviser who does not receive a commission based on the sale of any financial instruments to limit bonus annuity fraud.
Join a Free Annuity Fraud/Life Insurance Class Action Lawsuit Investigation
If you or your loved were told that a life insurance policy or annuity was an appropriate investment and it did not turn out as promised, you may need to have an investment fraud lawyer review the policy, the payments and the potential benefits. You may be surprised at what they find, and you may even qualify for financial compensation beyond what the policy promised.
Submit your information to a skilled investment fraud lawyer for a free review of your case. You will not be charged, and any consultation is free. Submit your information now!
Oops! We could not locate your form.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
6 thoughts onBonus Annuities and Fraud
I purchased an annunity with Allianz Life Insurance Company of North America and was told that it was the hightest earning annunity. The earnings are very low and there is no way for me to see howmuch mney is left in my annunity now that I am drawing on this account. This makes me think something isn’t right. Can I file a claim?
I took out 2 annuity at 22,000.00 each from Allianz using my thrift savings plan money from the postal service.at retirement the sales agent told me to get two policy’s instead of one for a higher return. I could take out the money of one them’ in about 5 years if It was necessary, he but 10 years promised highest return. after about 5 years I surrended one of the policys and they pretty much gave me 1/2 of the money that was in the policy minus a $2000 I had taken out for emergency. around $1,900. the return from invest ing my money they dis not give me.
My parents got into one of this annuities with Allianz in 2010. Is anyone working this cases?
Medical costs policy? 5 yr plan but vague explanations for what qualifies
Is there an active attorney working on these cases as of 2020?
What attorney is behind this advertising?