Insurance and Investment Scams Target Seniors
Seniors Against Investment Fraud (SAIF) along with the Iowa Insurance Division warn consumers of some of the more common financial scams that lead eager investors of all ages astray.
These are short-term debt instruments, such as loans from the investor to a company. The promise is a low risk, high rate of return. The problem is that the notes are often “guaranteed” by little-known or nonexistentcompanies. Those that do exist are often not licensed to do business in the U.S. There is no assurance that investors will get their own money back, let alone a profit.
These free consultations focus on estate planning, living trusts, retirement investing and other financial schemes. They are geared to establish a trusting relationship between the client and the sales agent and frequently result in the purchase of a financial or investment product that is unsuitable or unlicensed.
Annuities are investments that pay out an annual sum based on previous payments. While these are often legitimate and suitable, there can be hidden, costly surrender charges and management fees that can eat away at expected returns. Dealing with a reputable agent is critical.
Scams lead to lost income and emotional distress and are a common source of identity theft. What’s worse—because participation in them is voluntary, lost income is likely not covered by home or identity theft insurance. Working with high quality agents like those on our service team is your best option.