If because an insurance salesman in a bank did not make himself clear a deferred annuity was sold, and it is now closed, is there any penalty for early withdrwal besides losing all the interest? Under what circumstances?
The primary difficulty is PROVING that the salesman made an error. It is usually a case of "he said, I said" without proof. If you have a witness who could testify as to what was actually said, you would possibly have a good shot at getting your money back. Without some offer of PROOF, I am afraid that the company would not accept YOUR word.
As to the Penalty involved, you have to look at the contract, to find out what "percentage of YOUR money would be available". It could even be as little a ZERO........................... Check the contract, or see an ATTORNEY. Cal Lester CLU
In a situation like this, it is not apparent that the annuitant would have any ulterior motive for wanting to cancel the contract, especially if there was only a short time between the sale and the decision to cancel. On the face of it, he did not understand what he was signing and later discovered that it was not what he wanted. On the other hand, it is easy to imagine that the salesman could have deliberately misled the customer in order to make a sale. In such a situation, it seems that the burden of proof properly should lie with the salesman, not the consumer. Good, honest companies in many retail areas have a policy of ?complete satisfaction or your money back.? Why not the same with insurance sales?
satisfaction or your money
Maybe not everyone thinks companies should have that policy.
Corporations with those "guarantees" assign a cost value to having that policy and incorporate it into thier budget/bottomline. As a result they charge slightly more for their products to account for this added cost. I would rather place the burden of education upon the consumer and get cheaper goods (the free lunch theory strike again).
The next time some dimwit in front of you a Target is returning a toaster becuase he didn't read the box, realize that he is literally costing YOU money.
[Just my $0.02 and I apologize to the mods for the lack of financial planning specificity]
I wouldn't. I would prefer to pay a few cents more for the goods with the knowledge that, if the product did not work as I hoped, I would be able to take it back and get the right product or my money back. This concept is sort of like what is usually called "insurance."
The "hook" in the above advice is in the use of the word "COULD" (the italics are mine)
in such a situation, it seems that the burden of proof properly
Same here, "should". This would assume that the insurance company is in business to be of "help" to the insureds. That is NOT the case. The ONE SUPREME OBLIGATION of the company is to it's stockholders. That is an obligation to earn a PROFIT. There is no obligation to be nice to the insured.
Good, honest companies in many retail areas have a policy of ?complete satisfaction or your money back.? Why not the same with insurance sales?
Because the Insurance Industry is NOT in the retail area. They provide a service, which has to be paid for, so that the stockholders can be ASSURED of a profit.
Cal Lester CLU
Same here, "should". This would assume that the insurance company is in business to be of "help" to the insureds. That is NOT the case. The ONE SUPREME OBLIGATION of the company is to it's stockholders. That is an obligation to earn a PROFIT. There is no obligation to be nice to the insured.
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