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An Easy Guide To Understanding And Avoiding Variable Annuity Fraud

Variable annuity fraud is a serious issue for many people. This article will help you understand how to avoid variable annuity fraud and save yourself from the financial stress that it can cause. When shopping around for a variable annuity, be sure to keep these tips in mind.

Read The Contracts From Cover To Cover

You have to read all contracts carefully before you sign them so that you don’t make a costly mistake. That’s why every investment lawyer out there will tell you to read all paperwork before you sign on the line. Try to notice all details, including the small print.

If you are not sure what certain words mean, ask your Investment Lawyer for clarification or go to Google and type in specific terms. That way, you’ll avoid making a costly mistake by avoiding variable annuity fraud.

When reading contracts make sure that there aren’t any loopholes that would put additional money out of reach from you because it is being held under another person’s name (this makes up variable annuity fraud). If this does happen then contact an investment lawyer immediately before signing anything else!

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Look Into What You’re Investing In Exactly

You have to research what you’re investing in. You don’t want to end up with a variable annuity that doesn’t go as planned and isn’t worth the money at all. Make sure what you’re paying for is actually going towards some quality assets, such as real estate or stocks.

Don’t Get Fooled By Investment Promises

There are investment promises out there that seem too good to be true, they have returns of 15% year-round! However, these types of investments only yield profits because they charge hefty fees on top of your initial payment which makes it more likely for them not to pay off.

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Don’t Be Too Trusting

At the end of the day, you have to remember that there are those who want your money. Do some research on what you’re investing in and don’t be too trusting, even with people who seem like they mean well.

Learn The Warning Signs

You have to learn all the warning signs of variable annuity fraud in order to avoid falling into the trap. Variable annuities are often sold by unethical investment companies that use high commissions and bonuses to get advisors to sell them, even if they aren’t suitable for you or your situation.

Here are the warning signs you need to keep an eye on:

  • High commissions.
  • A salesperson won’t give you any of your options until he or she sells you the variable annuity
  • Promises that are too good to be true.
  • A push to purchase the variable annuity, even if you’re not sure that it’s right for your situation or needs.

Investigate The Seller

You must investigate the seller to ensure that you are avoiding variable annuity fraud. If the salesperson is reputable, they should be able to provide proof of their credentials on request. A few examples of what this looks like include an employment history with a company over two years in length and licensing information and documents pertaining to state law for selling insurance products.

With these pieces of evidence, you can feel certain that any investment product purchase made through your financial advisor has met all legal requirements. You can also ask about professional accreditations or licenses held by advisors when making future purchases so as not to fall victim again in the future!

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Ask Them Detailed Questions

You need to ask your seller detailed questions in order to avoid variable annuity fraud. When you are talking with the seller, ask them about their experience specifically with your insurance company and if they have any knowledge of past complaints or lawsuits against it. If there is anything that sounds suspicious at all, trust your gut feeling and do not buy from this agent.

The insurance company should be able to provide you with a complete list of any complaints that have been made against them. If there are no lawsuits, your agent should easily be able to prove why they chose this specific variable annuity plan for you and what makes it the best choice.

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Don’t Let Anyone Pressure You

Finally, you mustn’t let anyone pressure you into buying a variable annuity. If someone is pushing too hard, there’s probably something wrong with the offer. Ensure that you are not pressured or rushed to make an important decision about your finances and do not be hurried in any way when making your choice

Make sure that the person who advises you has no vested interest in selling variable annuities. If they receive a commission for every policy sold, then it may appear as though they have more of an incentive to sell one particular product over another.

A variable annuity can be a good investment if you’re careful. Read every contract and look into what you’re investing in. Learn every warning sign and investigate your sellers. Also, make sure to ask them detailed questions about what the opportunity is about, and don’t let them pressure you into a purchase. You’ll be on your own to a healthy revenue this way!

shrayan

Complete startup freak... Founder of Startup Opinions Expert in Google Analytics, ROI Tracking, SEO specialist, social marketing marketer.

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