Apparently the state of Minnesota is charging Allianz with selling unsuitable annuity products to seniors. The suit charges that Allianz did not disclose that seniors would have their limited savings tied up for 15 years, and that the bonuses would not be available to the seniors for the same time period.
The sale of long term annuities to seniors with aggressive and deceptive sales tactics has drawn national attention. Seniors are often invited to financial planning seminars that may come with a meal. Once their they were not informed that their funds would be subject to large surrender penalties if they withrew it early.
I know that in Texas, agents must fill out a form to determine if a person is a suitable risk for the investment! Of course, I can imagine that even with that precaution, greed may overcome better judgement.
Annuities can be a great retirement planning tool, but make sure you know what you’re buying, and how long you will be signed up, before you hand your savings over.
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