Cautions Concerning Life Insurance Annuities

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(Best Syndication News) – Recent fines assessed against two insurance companies highlights the importance of understanding your life insurance policy. The Department of Insurance for the state of Missouri fined Nationwide Life Insurance Co. and Nationwide Life and Annuity Insurance Co. for not taking the required steps to ensure that Waddell & Reed Inc supervision and control were adequate.

"Annuities can be highly complex products," said John M. Huff, director of the Missouri Department of Insurance. He is right; annuities are not your typical run of the mill insurance option.

The companies were found to be encouraging clients to move their investment dollars from one annuity to another that may have been less suitable and had a lower death benefit.

The companies charged clients a total of $10 million in fees for the transactions dating back years. That is a nice tidy sum to move money around. A settlement reached in 2004 against insurance agents Waddell and Reed forced the companies to refund the fees.

"That's why it's so important for consumers - especially seniors - to be able to trust in the advice of their life insurers and financial advisors,” Huff said. Clearly, these consumers did not get advice that was in the best interest of their financial future."

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By: John Waters



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