The Pennsylvania Attorney General filed a civil lawsuit in October 2004 against sixteen companies and individuals allegedly involved in a scheme that included the sale of long-term deferred annuities to seniors. The Attorney General cited this example:

In one case, an 85-year-old Delaware County man unknowingly was sold a 10-year deferred annuity with his first payment due when he turns 95.

A fixed deferred annuity offers a guaranteed interest rate for a set period of time. The earnings grow tax-deferred until the policyholder begins to withdraw income. The company generally resets the interest rate periodically but guarantees that rate never will fall below a minimum rate stated in the contract. Deferred annuities, however, impose substantial surrender charges upon the withdrawal of any portion of the initial investment or interest within the first 10 to 15 years, which limits annuitants’ access to their funds. (BestWire, June 13, 2005)

This makes deferred annuities particularly unsuitable for seniors who may need immediate access to their retirement funds. The high commissions paid for the sale of these policies have led to a huge increase of sales to older investors.

Insurance industry regulators have received a number of complaints involving the sale of deferred annuities to seniors by agents representing AmerUs Life Insurance Company and American Investors Life Insurance Company. Both these companies are subsidiaries of the AmerUs Group.

Older investors who have been solicited to purchase deferred annuity policies may have a claim. Please fill out the form below to contact us