An annuity is a type of insurance investment that enables the investor to receive a fixed sum of money yearly, for the rest of their life. There are many different forms of annuities that provide customers with a range of benefits but also leave room for certain risks (i.e. stock investments). Annuities are very popular amongst senior citizens since they are primarily bought as form of income during the stages of their retirement.
Since seniors are prime candidates for annuities, it, unfortunately, makes them susceptible to felony fraud orchestrated by conmen who pose as reliable insurance agents.
For example, two Pennsylvania native sisters, Mary and Philomena Nave, who were in their upper 80’s at the time, had saved up $500,000 to supplement them through their retirement. When looking for a dependable insurance agency to invest their money with, the sisters came across Richard Piccinini Jr., an annuities salesman. Unbeknownst to them, the sisters were ultimately placing their money into the wrong hands. In a four-year span, Piccinini moved the sisters in and out of complicated, long-term contracts that would lead to astronomical commission fees. With constant early-surrender penalty fees, Piccinini was able to embezzle $200,000 of the sister’s $500,000 investment (Source).
The idea of seniors being victimized by annuity salesmen is absolutely deplorable, but a sad reality. Deceptive agencies who are looking to make money off of uninformed customers are to blame for this. When the time comes to invest your money in annuities, it is highly important to conduct proper research before choosing a company. Sometimes, this burden can be eased with the help of family member who has your best interest in mind.
At Rising Capital Associates, we can provide you with a lump sum for your annuity payments. If you need cash now for expenses, medical bills, or emergencies, contact us now for more information on selling your annuity payments.