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While a fixed deferred annuity is a form of “investment”, it is, in reality, an insurance product. What this means for an investor is that the person that sells the product to you does not necessarily need to be licensed with the Financial Industry Regulatory Authority, Inc. (FINRA). However, the agent does need to be licensed in your state to sell insurance products. Consequently, you may not have the protections afforded by the FINRA rules and regulations. Regardless, there are still standards which agents must comply with in selling theses products. Therefore, if you feel that you have an issue relative to the insurance product that has been sold to you, you should consult with experienced counsel.
Please keep in mind that the information being provided herein is designed to be generic in nature. Consequently, it is being provided for educational purposes only and should not be relied upon as legal or investment advice.
A fixed deferred annuity is the insurance industry’s version of a savings account. The investor earns a modest rate of interest safely, and allows the investor to postpone the payment of income taxes on earnings for as long as the accumulation phase of the policy is in effect. Please don’t confuse a fixed deferred annuity with an immediate fixed annuity, where you pay a lump sum for the immediate commencement of the payment options referenced below.
Some of the characteristics of fixed deferred annuities include:
Notwithstanding the foregoing, fixed deferred annuities do have some pitfalls. For example, you may find yourself trapped for years in an investment that pays you less and less interest every year if you failed to read the fine print of the contract, are lured into a bad contract, by the offer of a substantial, upfront bonus, get bad advice or are the subject of fraud, misrepresentation or some type of other broker misconduct.Contact Us
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.