Seniors, Know Your Annuity Rights
On January 1, 2011 the Safeguard Our Seniors Act goes into effect. Annuity sales are at the heart of this act. Although annuities are sound investments, as with any product, they’re not for everyone. This act provides seniors extra protection from unscrupulous agents who are more concerned with personal commissions over client portfolios. Know your rights when purchasing an annuity in 2011 in Florida. Here are a few highlights of the act taken from the Florida Department of Financial Services newsletter, The Pulse:
- Limits the period of a surrender charge for an annuity sold to a senior consumer to 10 years and limits the surrender charge to 10 percent.
- Extends the “free look” period for the purchase of an annuity by a senior consumer from 14 to 21 days.
- Requires an insurer to provide a cover sheet attached to the policy when an annuity is issued informing the purchaser about the free look period and about how to contact the agent, insurer, and the department if they have questions about the annuity.
Purchasing an annuity is a big decision. Our agents often meet with not only the annuitant but also with their heirs. The reason being is that buying an annuity is an estate planning decision. One major reason to invest in an annuity is to avoid probate, which is approximately three-percent. In addition, many annuities offer principle protection which is great for seniors who don’t want the volatility of the stock market. There are several great products on the market worth considering, just be sure to deal with a reputable agent who’s looking out for your best interest.
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