OM Financial Life Allegedly Committed Annuity Fraud Against Customers

Many individuals and their families are pursuing annuity fraud and life insurance class action lawsuits against groups like OM Financial and other life insurance providers.

OM Financial Life Insurance Company, formerly known as Fidelity Guaranty Life Insurance, is an Iowa based company that currently provides life insurance and annuity plans for more than 700,000 policy holders across the country. It was reported in December 2012 that OM Financial’s total assets were around $17 billion, making it one of the most profitable life insurance companies today. However, like other life insurance companies, OM Financial Life has allegedly committed annuity fraud against some of its customers.

What is Annuity Fraud?

An annuity is a type of insurance contract in which the insurance provider, like OM Financial Life, agrees to give the policyholder a series of payments during regular intervals after the customer has paid an initial premium. Life annuities are a specific type of annuity in which the insurer will pay the policyholder an income for as long as they live, usually in monthly installments. Annuities are usually bought with the goal of providing retirement income in the future.

There is also variability when the return payments on the annuity begin. For example, immediate annuity plans begin return payments in periodic installments immediately after the policyholder pays the premium. However, these are not popular or common. The most common type of life annuity is the deferred annuity plan, which generate large profits for companies like OM Financial Life.

Deferred annuities accumulate interest over time and the return payments are deferred for a number of years. These are very popular among middle age and older individuals who are planning to retire in later years and are trying to plan ahead. Customers may buy deferred annuity plans from OM Financial Life when they are still actively employed in order with the idea that they will earn of larger returns on their initial investment during their retirement years.

Annuity fraud occurs when insurance agents, allegedly like some OM Financial Life agents, financially exploit those reaching retirement age by misrepresenting the nature of annuity plan.

According the California Department of Insurance, “many elderly individuals have been taken advantage of by insurance agents who have manipulated them into purchasing an unsuitable annuity or replacing existing or established annuities with a new one[.]”

Annuity fraud is usually discovered when the policyholder attempts to begin the return payments on their deferred annuity, only to discover that they were sold the wrong annuity plan, the promised income payments are not as large as initially promised, or they are hit with extra fees in order to receive their installments.

OM Financial Life policy holders are not the only consumers who allege that their insurer has committed annuity fraud. Other companies that are also facing annuity fraud class action lawsuits include:

• ING Life & Annuity
• Fidelity Guaranty & Life
• Allianz
• American Equity
• Aviva
• Bankers Life
• National Western Life Insurance

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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