Posted by (American Life Insurance Guide 08/06/2021 News)An 86-year-old policyholder in San Francisco, California was “sold” an annuity insurance policy and recently received settlement compensation from an insurance company.In addition, the family life insurance company was fined $15.
process
The life insurance company involved is Jefferson National Life Insurance Company.
In 2018, the California Insurance Agency noticed that an 86-year-old San Francisco resident had applied for two variable annuities (Variable Annuity) from Jefferson National Life Insurance Company, valued at approximately $69.
This female policyholder applied under the advice of an investment consultant, and subsequently,She said that she did not understand what fund-type annuity insurance was, nor did she know how much she would invest in it.
The California Insurance Bureau, which conducted the investigation, believes that Jefferson National Life Insurance Company did not protect consumers.The agent broker of the company completed the application by simply signing the annuity insurance purchase form.The insurance company does not have any other measures to interact with consumers to confirm whether consumers understand the terms of the annuity they purchased, or whether the annuity is suitable for consumers' needs.
According to the final settlement plan, Jefferson National Life Insurance Company will refund the insured's fees, totaling $14,000, and accept a fine of $150,000 from the State Insurance Bureau.The insurance company will implement new protective measures to prevent such abuses in the future.
Retirement annuity insurance for senior citizens
The elderly population in the United States is huge and growing. At the same time, the elderly in the United States own two-thirds of the total personal wealth of the United States.By 2, the number of senior citizens in the United States is expected to be nearly twice as high as in 3.
Since many elderly people have already saved enough money for retirement, they usually also seek financial services and products such as retirement income.Therefore, the elderly are often targets of financial fraud.
Because annuity insurance is a relatively complex investment product.In the field of retirement insurance, some elderly people will be misled by buying annuity insurance products or financial planning schemes that are not suitable for their actual needs.
In this settlement case, the financial adviser sold a fund-type continuous annuity insurance to the 86-year-old.
"Although this type of investment insurance product has high growth potential, it also has a relatively high risk."Insurance Consultant Heather Said, "Add the cost of this type of insurance product and aLonger penalty period, Is not suitable for the financial insurance plan of the vast majority of the elderly. "
What is Variable Annuity?
- Variable Annuity, called variable annuity in Chinese, investment annuity, or fund annuity insurance, isFive types of annuity insurance in the U.S.One of them.
- After investing in fund-type annuity insurance, the insurance company invests your funds in stocks, bonds or other investments according to the risks you have to bear.
- If the fund performs poorly, you may lose part or all of your investment.If the fund performs well, you may get a return that exceeds the average return of the market. (End of full text)
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