Date: July 30, 2002
For Immediate Release
Contact: Ed Long, (310) 533-1996

Annuity Sales to Seniors

They're out there! Who? Those nasty folks who try to scare, trick or cajole seniors into buying annuities whether they need them or not. Some of them even cloak themselves with names that suggest they're true senior-serving non-profit organizations. 

Sometimes they start out telling us that they want to help us with estate planning and creating an inexpensive living trust. Alliance for Mature Americans (since shut down by the California Attorney General) sold more than $200 million of annuities that way. Other times, they tune into the concern many older adults have about paying the costs of long-term care. 

The Wall Street Journal recently published a report titled "Annuities 101: How to Sell to Senior Citizens." The report described a training session of "Annuity University," self-proclaimed as the "Nation's first and foremost Annuity Sales Training School." The Annuity University instructor educated the attendees about seniors and selling annuities to them. The WSJ report provided quotes from the training session, including these: 

  • "Treat them like they're blind 12-year-olds . . . ." 

  • "There's the technical answer," . . . and "there's the senior answer. Tell them it's like a CD -- it's safe, it's guaranteed." 

  • "You're there to solve their problems, but you have to create those problems first. No problem, no sale." 

  • "Tell them you can protect their life savings from nursing-home and Medicaid seizure of assets. They don't know what that is, but it sounds scary."

  • "It's about putting a pitchfork in their chest." 

The WSJ report was published on July 2, 2002 and was written by Ellen E. Schultz and Jeff D. Opdyke to expose this stomach-turning sales training. For more information about Annuity University, go to www.annuityuniversity.com 

In this environment, where can a person turn for good information? "There are many honest, reputable insurance and financial professionals, who provide solid advice to their clients. We have no beef with the professional who sells an annuity in appropriate circumstances – where the purchase is suitable based on the person's financial, health and personal situation and goals" says Ed Long, executive director of H.E.L.P., an award-winning South Bay non-profit. 

Long continues "Annuities can be confusing. How can you make a good decision? Get the facts! You need to do your homework, before you invest. You need to know the details of any annuity being offered to you. You need to know whether the annuity fits your situation." 

To help older adults (and their families) know how to deal with annuity sales questions, H.E.L.P. has written a consumer-protection Special Report called "Annuities and Older Adults." The Special Report includes 

  • information on how annuities work, 

  • warnings from financial writers and regulators, 

  • the truth about certain alleged benefits of annuities, 

  • H.E.L.P.'s list of "stinky" annuity sales situations, 

  • and more. 

H.E.L.P. has also created a new website [www.annuitytruth.org] that contains not only the Special Report, but also a list of agencies in California and elsewhere to contact if a person believes they have been sold an unsuitable annuity. 

While supplies last, H.E.L.P. will mail a copy of the Special Report for free to those who request (a donation will be invited). You can call (310) 533-1996 to request a copy. The Special Report is also available for free download from www.annuitytruth.org

H.E.L.P. (Healthcare and Elder Law Programs Corporation) is an award-winning Torrance-based non-profit service for older adults and their caring families and friends. It helps people meet aging-related legal and care challenges, through classes and private consultations. Telephone and Internet assistance is also available. Since its inception in 1996, it has helped thousands of older adults, family members and friends. Almost all services are free. H.E.L.P. is located at 1404 Cravens Avenue, Torrance, California 90501. The phone number is (310) 533-1996, and the Internet address is www.help4srs.org