For as many years as I can remember, I have had so much anger about insurance salespeople who sell annuities to senior citizens. For most seniors, the only appropriate annuity is an immediate annuity or life annuity.
Finally, somebody has gone to jail for what I’ve always believed is a travesty, according to The Wall Street Journal. A California insurance agent was ordered to serve 90 days in jail for the felony of selling a very complex annuity to an 83-year-old woman with dementia.
The agent brought the 83 year old to the bank to withdraw all her money and put it into annuity. But he got busted because a bank manager realized this woman’s life savings were about to be decimated and notified legal authorities.
The insurance company has now returned all the money, waving the 12.5% penalty they would have otherwise assessed on the senior citizen.
One final thought: If you see an offer for a free lunch or dinner seminar, that will be the most expensive meal you ever eat. Nearly 100% of the time, it is an insurance person trying to sell you annuities.