Over the last several years, annuity fraud has become shockingly widespread. Individuals over the age of 65 in particular are frequent targets of these deceptive acts.
In a typical annuity scam, a person of advanced age is sold an insurance annuity contract by a licensed agent. The agent enthusiastically promotes the many benefits of annuities, but conveniently omits information about hidden fees, mortality fees, and surrender charges as high as 25%.
In exchange for a promise of future rewards, the elderly individual ties up his or her life savings—money that may have been needed for essentials like food, housing or medical care. Meanwhile, the agent pockets a handsome commission.
If You’re the Victim of an Annuity Scam, You Do Have Rights
To protect seniors, many state insurance departments and state governments have implemented strict regulations for selling annuities.
An agent may be required to notify an elderly consumer by mail that they intend to discuss annuities three days prior to meeting with that consumer. Most states now mandate a “free-look” period for purchasers of annuities.
During this 30 to 45-day time frame, the senior has the option to change their mind about the policy and get a full refund of their money.
How to Get Your Money Back from Annuity Scams
Annuity scams can be devastating. The Center for Life Insurance Disputes has 20 years of experience advocating for the rights of annuity scam victims.
If you believe you were misled into buying an annuity that was inappropriate for you, or if you’ve experienced severe financial loss as a result of an annuity you purchased, please contact us to explore your options for recovery.