Salespeople in the insurance and annuity industries continue to make product recommendations that are unsuitable for individuals over 65 years old. The profitability and sales commissions will continue to ensure that someone, somewhere cannot be trusted with mom and pops’ retirement savings.
One of the most common (and preventable) scenarios generally goes like this: Mom and Pop retire and want to extend their savings over the course of their life expectancy (and beyond). The insurance and annuity industries know this and sure enough they get a call one day. On the other end of the phone is a saavy, fast-talking salesman or woman who starts the conversation by saying something to the effect of, “Welcome to retirement, you’re dreams await you.” To make this story a bit shorter, they convince Mom and Pop to purchase financial products that sound great but are unsuitable for someone their age. For example, an annuity with a 25-year guarantee is not a suitable product for someone turning 75; an insurance policy with excessive premiums that reduces one’s quality of life is not recommended either.
Make sure you understand that the financial and insurance industries have plenty of incentive ($$$$$) to sell you products you don’t need, and we all know after the financial debacle that neither Wall Street nor Insurance Avenue have the public’s interests at heart. Be prudent and consult with a trusted advisor or attorney who specializes in protecting the elderly before making any important or life changing decisions.
Jeff Aidikoff is an elder abuse attorney in Los Angeles, CA. For questions or a free consultation cal 800-981-5932.