Variable Annuity Fraud Attorneys

Variable annuities are among the most abused products in the financial industry. High commissions drive brokers to sell them to investors for whom they are entirely unsuitable — often seniors who can least afford the consequences.

Call 888-741-7503

The Problem

Why Variable Annuities Are So Often Abused

Variable annuities pay brokers among the highest commissions of any investment product — often 5-8% upfront. That creates a powerful incentive to sell them even when they are completely wrong for the client.

The product itself is complex — combining insurance and investment features with multiple layers of fees. Annual expenses of 3-4% are common. Surrender charges can trap investors for 7-10 years, preventing them from accessing their own money without penalty.

The most common victims are senior investors who are sold variable annuities inside tax-advantaged accounts like IRAs — where the tax-deferral benefit the annuity supposedly provides is completely redundant and the investor receives nothing in return for the excessive fees.

Excessive commissions

Brokers earn 5-8% upfront selling variable annuities — creating powerful incentive to sell them regardless of suitability.

Surrender charges

Surrender periods of 7-10 years trap investors who need their money. Early withdrawal penalties can be devastating.

High annual fees

Mortality and expense charges, investment management fees, and rider fees stack up to 3-4% annually — destroying returns.

Unsuitable for IRAs

Selling variable annuities inside IRAs provides no additional tax benefit but adds all the costs — a clear suitability violation.

Switching fraud

Brokers switch clients from one annuity to another to generate new commissions — resetting surrender periods and costing investors dearly.

You May Have A Claim If

Your annuity was purchased inside an IRA or other tax-advantaged account
You were not told about the surrender charges before you invested
The annual fees were not fully disclosed
You needed access to the money but were trapped by surrender charges
The annuity was switched from a previous annuity within the past few years
You are over 65 and were sold a long surrender period annuity
The returns have not come close to covering the fees

We review your annuity contract and account records for free. If you have a claim we will tell you.

Call 888-741-7503