Consumer protections selling Life Insurance and Annuities

By | November 15, 2009
Congress has legislation pending that will add protection for consumers when buying Annuity and Life Insurance products. What has happened is there have been some un-reputable salespeople sell Annuity products to Seniors and did not have their best interest at heart. Needless to say not a good situation, consumers need to educate themselves as well when dealing with monies they are thinking about investing, surrendering etc.
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Congress wants states to beef up oversight of firms that sell annuities to seniors. The plan: Cash grants to states that go along.

WASHINGTON ( — Congress wants to help protect seniors who buy complex investment products that they don’t understand or may do more harm than good.

States could get as much as $500,000 apiece to investigate and prosecute fraud against seniors, but only if they agree to strengthen their laws to match national consumer protection standards.

As the financial crisis has wreaked havoc on nest eggs, more retirees have turned to annuities and other life insurance products as alternatives to stocks.

Stronger oversight

State and federal officials have already started looking into how they can strengthen oversight of annuities, but regulation is patchwork state by state.

The House Financial Services Committee approved a version of the legislation earlier this month, and the Senate will start considering it later this week. To top of page

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