In the United States, the number of aged population is going up every year. Most of the seniors would plan to save for their expenses during the retirement years. This is the main reason most of the fraud insurance companies would try to target them often. Insurance companies are now providing high commission rates to the agents so that they would sell their products such as long term deferred annuities to the senior citizens. So, it’s important to check out various details and relevant information before seniors investing in annuities. This is the reason you must read the following tips that you have to consider before you think of buying a particular annuity.
Several state agencies have warned seniors to be careful about investing in annuities. The Minnesota State Attorney General has a dedicated part of his website to annuity sales to seniors. Here are some of the red flags and key things for investors to consider before purchasing an annuity:
Beware from the high -pressure sales seminars and tactics:
It’s important for you to be cautious about the various high-pressure tactics which they would try to apply on you. Some agents might cold call you and would try to convince you by saying that it is a limited period offer. They also try to lure you saying can come down without any appointment, seminars for which they would invite you with free meal offer. These tactics are fake and make sure to stay away from such fraud agents.
Beware of the high surrender charges:
The most essential point which you need to check is the surrender charges which the insurance companies would charge from you when you withdraw funds. This is applicable only when you withdraw from your account early. The surrender charge is the amount or the percentage of the amount which the consumer will be charged when they would withdraw their funds early.
Beware of agents who would urge for Seniors investing in annuities:
SEC is warning the consumers to be safe from the annuity sellers as they are urging the customers to move from one annuity to another. This is called as churning. They might not let you know the fees for switching investments and related fees. So, it is important for you to ask the agents to find out the exact costs involved and only if it benefits you need to go for it.
Can be on guard against the bonuses:
Most of the agents would target the seniors investing in annuities and would insist on providing bonuses to investors. Bonuses are just one of the marketing tricks which they follow. So, don’t fall for those offers.
Don’t go for investments that you cannot afford for:
If you feel that the investments are unrealistic then don’t go for such kind of annuities even when the agents try to convince and encourage. You may need that amount for your living or health care needs. Never get lured for the worlds of insurance companies and agents.
Always go for reputable financial agents:
Before you choose a particular agent it’s important to take your friends or families opening and choose a reputable and well- known agent. In this way you would be able to find a reliable and dedicated agent or insurance company that you need.