Annuities, What Seniors Need to Know

9 Protect Yourself from Financial Abuse Financial abuse of seniors is a growing problem. Many seniors have assets because they have worked all their lives, paid off their homes, and saved for retirement. Financial abuse can drain seniors of life savings, leaving them penniless when they need health care or long- term care. Illnesses such as dementia and Alzheimers can make it harder to recognize scams and seek help. Agents can make high commissions on annuities. Most insurance agents and brokers obey the laws. But some are dishonest. They may convince you to: • Buy an annuity that is not right for you. • Replace your annuity—they get a commission and you pay extra fees. • Get a reverse mortgage in order to finance an annuity. Living Trust Mills The growing popularity of estate planning has led to scams called Living Trust Mills. An experienced estate-planning attorney should set up your living trust, not an insurance sales agent. Scam Warning Signs • The sales agent claims to be a trust expert, trust advisor, senior estate planner, or paralegal. • The agent offers free seminars, in sites like assisted living centers, retirement communities, or places of worship. • The agent offers “free” meals, catered or in a nice restaurant. (You may have to give your contact information to get the “free” meal!) • The agent offers to create or update a living trust in order to see your financial information. • The agent gives you wrong information about your current investments. The agent may say that the annuity has less risk than your investments or savings accounts. • The agent tries to sell an annuity to a veteran, to reduce their assets so they may qualify for a Department of Veterans Affairs benefit.