Annuity Fraud Dedicated to Delivering Results

Annuity Fraud Lawyers Based in New York

Reliable Legal Guidance for Clients Nationwide

It is common for financial advisers to push for the sale of variable annuities due to potentially higher commissions. These investment products, however, are subjected to fraud and financial adviser misconduct.

If you or a loved one has purchased a variable annuity based on the false promises of a financial adviser, we can help by providing professional legal counsel in arbitration cases. Call (877) 905-7671 today.

What Are Annuities?

It is a type of insurance policy where investors receive fixed payments at regular intervals (e.g., monthly). These benefits may continue for as long as that person lives or a fixed period of time. Some participating annuity policies feature a non-guaranteed component. This means that investors get paid according to how well their insurer's participating fund performs on the market. People typically purchase annuities so that they have income during retirement.

Types of Annuities

There are 2 types of annuities:

  • Fixed annuities pay investors guaranteed rates of interest that are typically higher than bank-issued Certificate of Deposits (CDs). Investors can choose between drawing the income immediately or deferring it. Fixed annuities are popular among pre-retirees and retirees who feel comfortable with a modest and affordable fixed investment.
  • Variable annuities are often purchased by pre-retirees and retirees who seek guaranteed lifetime income or want a shot at capital appreciation in tandem. Investors get to choose from an array of mutual funds (subaccounts) and even buy riders to lock in a guaranteed income stream. Account values are determined by the market performance of subaccounts. Therefore, a rider serves as a hedge if subaccounts perform poorly.

Understanding Living Benefits & Surrender Fees

Insurers are required to provide some form of downside protection for investors. These benefits/features are known as guaranteed minimum accumulation or guaranteed minimum income. Investors who want this type of protection, however, must pay more money. The problem is that these requirements may be misrepresented by financial advisers. For example, some investors were not properly informed about surrender fees. These are costs they need to bear if they wish to withdraw some or all their principal before their annuity periods expire. If you do not pay these special fees, you can only collect your annuity when the payout phase commences. As you can see, surrender fees make annuities unsuitable for seniors and short-term investors who need constant access to their funds.

Meet with a Seasoned Attorney to Discuss Your Annuity Fraud Case

Annuities fraud can manifest in many forms. For example, a financial adviser may convince a person to purchase an annuity, only to realize that his or her money has become trapped. This causes a major problem if an investor requires money for an unexpected medical emergency. Now, if you were coerced into buying a policy due to inaccurate information or aggressive marketing, it is considered annuities fraud. Because you may face substantial losses due to an inability to access money when needed, you should not continue being a victim even if you are dealing with a trusted agent. It is recommended that you file a civil lawsuit to avoid further losses. In addition to helping clients recover funds, Weltz Law’s annuities fraud attorneys will also maximize your potential compensation.

Call us today at (877) 905-7671 or fill the online form to schedule a free consultation with us.

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  • 30+ Years of Collective Experience

    Our attorneys have over 30 years of collective experience representing clients in all aspects of securities and commercial litigation.

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    Our firm has successfully recovered over $50 million for our clients.

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