ING Investigated Over Alleged Annuity Fraud

ING Life & Annuity and other financial planning companies are being investigated for annuity fraud for allegedly luring investments based on false promises.

Many annuity and life insurance companies make promises that there is no risk for a retiree to invest in an annuity, but then note that all guarantees of the annuity are “are subject to the claims paying ability of the issuing insurance company.”

ING offers three types of annuities: fixed, index, and immediate. Each type is supposed to guarantee that the policyholder will be paid handsomely for signing up for the annuity. Here are ING’s annuity offerings:

• ING Fixed Annuities: In return for purchasing a policy the company will pay the policyholder a fixed or stated rate of return. The company states that this annuity is best for people who are looking for a tax-deferred growth and want a certain rate of return. The company promises the policyholder a fixed amount of money in return for signing up for the policy, to either be paid on a schedule-basis or on a specified date.
• ING Index Annuities: Index annuities are insurance contracts which, depending on the contract, may offer a guaranteed annual interest rate and earnings potential that is linked to the growth of any of the policyholder’s investments. ING states that this annuity may be suitable for people who are looking for a tax-deferred growth rate and want a minimum interest rate guarantee, and could also benefit from the rising markets. This annuity allows policyholders to collect rewards for their investments and interest rate, with paying the company as little money as possible.
• ING Immediate Annuities: ING offers an immediate annuity service, which is designed for a policyholder with a lump sum of money who is interested in immediately converting that sum into a stream of income. ING advertises this type of annuity as an immediate reward product, meant to be quick and easy for policyholders to setup.

The basic idea behind each annuity product ING offers is that the policyholder pays for the initial setup of the annuity, and is promised either a schedule of payments of the return of their investment, or is promised a fixed amount on a future date. However, ING has been accused of misleading various clients to sign up for annuities that either do not suit the policyholder’s needs, or get consumers to buy policies they don’t need.

Overview of Annuity Fraud

ING and other financial services companies have been accused of using deceptive and aggressive sales tactics against the elderly or recently retired. Many of those policyholders have been forced to file annuity fraud lawsuits after failing to collect a dime on their investments.

Policyholders are often victimized in annuity scams by being tricked into purchasing worthless life insurance and annuity products that charge large fees for early withdrawals or cannot be retrieved for a certain number of years. These often turn into cases of elderly financial abuse, and it is not unusual for policyholders to die waiting to collect.

Other schemes involve “bonus credits,” in which the insurance company agrees to add an average of 1 to 5 percent to each premium payment. These bonuses often have higher and hidden expenses that offset any potential gains.

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!

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