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DFS Posts Special Internet Report on Equity Indexed Annuities |
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09/06/2007 |
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TALLAHASSEE-Florida Chief Financial Officer Alex Sink has created a
link on her Internet site to help consumers better understand equity
indexed annuities, which have become big sellers despite being a
relatively new and complex annuity product. Annuities were the subject
of a hearing Wednesday before the United States Senate's Special
Committee on Aging that addressed reported marketing abuses.
From the Department of Financial Services, September 6, 2007
Often touted as a way for investors to realize stock-market-like gains without the risk, equity indexed annuities have proven confusing to some investors who have complained to the Department of Financial Services Consumer Helpline of being misled about how the product works or not having their expectations met. These products can come with hidden penalties, costs and fees, and hefty multi-year surrender charges and may not be ideal for some senior citizens.
"As with any investment product, it is important for consumers to read and understand any document before signing and get all agreements in writing," said CFO Sink, who oversees the department. "Our aim in providing this link is to help consumers ask the right questions to protect themselves and invest their money in a way that best serves
their needs."
To view the Equity Indexed Annuities link, go to MyFloridaCFO.com
http://www.myfloridacfo.com
and click on the Equity Indexed Annuity lert button on the right side of the home page. The link includes definitions of key terms relating to equity indexed annuities, explains fees and charges that may be incurred, points out important questions to ask and provides warning signs of potential fraud. Consumers with qu estions or complaints regarding equity indexed annuities should call the department's Consumer Helpline at 1-800-342-2762 or log on to MyFloridaCFO.com.
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