Often Unsuitable Sale of Deferred Annuities - Potential Class Action Lawsuit

Unsuitable Sale of Deferred Annuities

Seeger Weiss LLP is investigating claims regarding the sale of deferred annuities for a potential class action. Deferred annuities offer consumers an interest rate that will not fall below a certain amount over a period of time and taxes on income earned are deferred until the consumer begins to withdraw their income. However, deferred annuities are often not the best investment choice for many consumers. One reason a deferred annuity may be a poor choice is because deferred annuities often have significant surrender charges if the consumer chooses to withdraw income before the annuity has matured (which may be as long as five to fifteen years). Another reason a deferred annuity may be a poor choice for some consumers is that once the annuity has matured, annuity payments may be spread out over many years.

A number of state attorneys general and insurance regulators have filed lawsuits against companies that sell deferred annuities, such as Midland National Life Insurance Company and Allianz Life Insurance Company of North America, alleging that these companies marketed deferred annuities to senior citizens. Deferred annuities are often unsuitable for the needs of senior citizens because of the long maturity date, the high surrender charges if the consumer needs to withdraw funds before the due date and the length of time over which annuity payments may be spread out.

If you or someone you know purchased a deferred annuity and you would like to learn more about this situation, please complete the free case evaluation form.