Greg Egbert Insurance 4 Less Unethical Insurance Advisor Misleading Seniors Vancouver Washington
This happened to my elderly mother. Below are excerpts of the letter I sent the Washington State Insurance Commissioners' Office.
An insurance agent by the name of Mr. Greg Egbert sold my mother a tax-deferred annuity from Allianz Life approximately 4 years ago. It is currently making 3%. When my mother informed me Mr. Egbert was going to put her in a different annuity I requested his phone number and wanted to ask him specifics about it. I found the penalty for switching her to an annuity with a higher return there would have been $6,700 (over 18%) on her approximately $37,000. When I called Allianz and asked when the money could be withdrawn in a lump sum without penalty the answer was never. You make only take out in total up to 15% in the 1st 5 years, then receive only yearly, or quarterly payments for the life of the balance. Mr. Egbert would have made a commission on this trade. Allianz would not reveal to me the amount of commission he would have made.
My mother is 80 years old . She does not receive enough money to file a tax return. In all probability she will be in her late 80s or early 90s before she will receive all the money that was in this annuity without suffering a penalty. It is hard to imagine any reasonable individual of advancing age and limited income that would put their life savings in this type of annuity if the large penalties and severe restrictions were clearly and comprehensively explained to them beforehand.
Mr. Egbert is less than forth coming and direct with details when selling this type of policy to an elderly person on a limited income. No reputable financial advisor would ever recommend a tax-differed annuity to an elderly person who doesnt make enough money to file a tax return and where the balance of her life savings cannot be withdrawn or transferred without huge penalty. Mr. Egbert violated his trust with my mother. That has done my mother an inexcusable disservice. Mr. Egbert bills himself as a certified senior advisor. If giving this kind of advice is not illegal, it certainly is unethical, reprehensible and amoral.
Janedough
Arleta, California
U.S.A.
4 Updates & Rebuttals
Mike
River Edge,New Jersey,
U.S.A.
Waiting for your answer
#5Consumer Comment
Sun, September 23, 2007
In order for me to understand your issue, please supply me with answers to my questions. It is hard to determine what if any wrongdoing was done without the answers. The most basic of which is what kind of annuity your mother is in
Janedough
Arleta,California,
U.S.A.
correct website
#5Author of original report
Sat, September 22, 2007
correct website address is insurance
Janedough
Arleta,California,
U.S.A.
update
#5Author of original report
Sat, September 22, 2007
Mr. Egbert has been reported to the Washington State Insurance Commissioner several times.
Mike
River Edge,New Jersey,
U.S.A.
Couple of things
#5Consumer Comment
Sat, September 22, 2007
1. Is the annuity in the accumulation phase or the annuity phase? If she's in the payout phase, than no it makes no sense to move it.
2. Is the annuity a deferred or immediate? It sounds to me as though she has an immediate annuity which provides for payments to her. IF that's true, than no, you cannot withdraw the entire contract as the payments are based upon her life span, and yes, it is meant to pay her an income, not be an immediate payout. That's kind of the whole point of an annuity.
3. There is nothing wrong with selling your mother an annuity. They are designed to provide guaranteed retirement income for life (usually although payout features vary), while at the same time providing loved ones a death benefit
4. If your mothers life savings is complete at $37,000 than there are two issues. NO, he should've never put all of it into an annuity, and your mother is in serious trouble financially and you should prepare to support her in the future.