Problems with Equity-Indexed Annuities

Many consumers who purchased Equity-Indexed Annuities    ("EIAs") feel they were misled by either the Insurance company, or the agent who sold the products. Many are now questioning whether the EIAs they purchased are suitable investments for them. If you are concerned that the EIA you purchased is not as it was represented to you at the   point of sale, or if you have learned that you cannot access  your money without incurring substantial losses, charges or fees, you may have legal claims you need to protect. Upon your request, we will provide a free consultation and evaluation of legal claims you may have arising from your purchase of an EIA. To learn more contact us.

 An Equity Indexed Annuity ("EIA") is a type of fixed annuity whose ultimate rate of return is based on an external market index, such as the Standard & Poor's 500 Composite Stock Price Index (i.e., S&P 500). 

The marketing and sales of many EIAs has emphasized the potential for larger interest credits than what might be paid on traditional fixed-rate annuities, while avoiding the downside risk that accompanies the direct investing in equities. There are hundreds of variations in EIAs in the marketplace and many insurers have multiple EIA products. 

EIAs are complex and difficult to understand. Sales of products have increased dramatically in recent years despite the confusing features of the product (such as the method used to calculate the gain in the index to which the annuity is linked, as well as the several different indexing methods and interest crediting methods). Misleading or incomplete information about the products given at the point of sale can compound the complexities of the products. 

Many consumers are simply not given an adequate understanding of the products and the risks associated with them, and in turn, funds for retirement and savings have been placed in EIAs that are unsuitable for many who purchase them. 

The proliferation and increased sales of EIAs has led to increased concerns by consumers and regulators. To learn more about litigation, allegations and alerts pertaining to Equity- Indexed Annuities please contact us.