Thursday, October 13, 2005

Annuity Death Benefit

One of the greatest things about what we do with our annuity information is showing people what to be careful of up front. With annuities, you can never be too sure unless you do your homework. You need to see what features you want your fixed or variable annuity to have and make sure you know them well.

One thing we stress in 'Annuities: The Shocking Truths Revealed' is that when you buy an annuity, you must make sure that 100% of the proceeds should be available at death, unless for some reason this purpose doesn't serve you. But that way, no matter how old you are, you can get into an annuity and be assured that you can enjoy its benefits while you are alive, and make sure that your family gets 100% of the money upon your death.

Well, quite often, everything we write about eventually makes the news. Meaning, the things we warn people about, the news all of a sudden discovers and makes a big deal out of it. Hey, we have been warning people about these things for years. Had they just bought our annuity information, they would have figured it out much sooner.

So the latest discovery about annuities is exactly what we are talking about. Seniors getting into annuities at an old age and t100% of the principle NOT being available at death...we've been warning you about this since day 1. So read this article that I think is very important. Understand it. And when you are looking for reliable damn good annuity information, please check us out!!!

FOR RELEASE: October 7, 2005 (#091)


Complaints to the Department of Insurance highlight dangers seniors face; many have been sold annuities that won’t pay off until long after the senior’s life expectancy

SACRAMENTO – Responding to complaints about inappropriate sales of annuities to California seniors, Insurance Commissioner John Garamendi issued a letter today to California life insurance companies urging them to develop suitability standards for the sale of annuity products to seniors.

The California Department of Insurance (CDI) has received numerous complaints about problems resulting from annuities sold to seniors, including the practice of selling products that provide no benefit until after the purchaser’s life expectancy. Other problems include nondisclosure of tax consequences; unexpected surrender charges; and loss of death benefits or other types of benefits when selling a deferred variable annuity.

“Insurers, brokers and agents owe it to their clients to deal from a position of honesty, good faith and fairness,” said Commissioner Garamendi. “While they are not explicitly required to set standards for the sale of annuities, I strongly urge them to do so for the benefit of some of the most vulnerable members of our society. The hard-earned savings of thousands of seniors is at stake.”

A Department-sponsored legislative measure, SB 192 (Scott) would require that the industry establish insurer suitability standards. The bill will be considered again next year. Additionally, the National Association of Securities Dealers (NASD) will also attempt to rein in sales practices for some annuities with Proposed Rule 2821—Sales Practice Standards and Supervisory Requirements for Transactions in Deferred Variable Annuities.

The rule highlights the need to disclose the complex features of such annuities, and the need for training of the sales force so that they are able to explain issues like suitability of the investment for seniors, the result of exchanges of other deferred annuities, tax consequences and surrender charges.

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Please visit the Department of Insurance Web site at Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

So there you have it. Just understand, this is one of MANY principles we talk about in the annuity book we offer. Again, to see our annuity book , please click on the 'annuity information' link above.

Ignorance 'Ain't' Bliss

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