Questions of Liquidity May Impact Annuity Fraud Concerns
By John Curran
By paying a premium to a financial services company until a certain total is reached, seniors often expect that they will get a set amount of payments through an annuity up to the end of their lifetime. That is not always the case, and elder fraud lawsuit attorneys are pointing out several key problems.
Companies Scramble to Meet Tough Goals
In order to make a profit off an annuity, a firm has to be able to make enough of a return on the investment of a senior’s premiums to cover the amount of guaranteed annual payments as well as have money left over to support their own business.
Seniors have often alleged annuities fraud in cases because of the lack of clarity regarding the commissions and fees that are taken from their accounts pursuant to fine print in contracts as the company employees pursue aggressive investment strategies.
Inadequate Explanation of Liquidity Provisions
At least half of all seniors are concerned about being able to remove cash from an annuity if there is an immediate need, according to a study performed by Genworth Financial. Some of those who ended up choosing the investment vehicles still have concerns, 22 percent were not satisfied with their ability to get cash out in case of emergencies. If these elements are not explained, then it could be the basis for beginning an annuities fraud lawsuit.
Misrepresentation of Products and Other Annuities Fraud
A recent class action lawsuit that names ING as a defendant alleges that the company did not adequately inform older Americans that the annuities they bought included complex financial instruments including derivatives. As a result, they were reportedly exposed to heavy losses even though salespeople represented the products as safe for seniors who wanted a guaranteed income stream.
Elder Fraud Lawyers are Investigating Claims
Older men and women who think that they were lied to about the future prospects of their investments including annuities and potentially life insurance fraud may have legal options available to them. Learn more about yours by visiting the Life Insurance, Annuities Fraud Class Action Lawsuit Investigation. Filling out the short form there entitles one to a free case eligibility review to establish whether or not you can take action against the company or employees that may have engaged in fraudulent behavior.
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
