fbpx
U
April 22, 2008

NBC's Dateline: Tricks of the TradeChris Hansen from Dateline NBC devoted an entire hour on April 13, 2008 to the topic of equity-indexed annuities and the unscrupulous tactics sometimes used to sell them to seniors.

(Recognize Hansen’s name? He’s best known for his work on the Dateline NBC television segment To Catch a Predator. These controversial investigations revolved around catching Internet sex predators using a sting operation.)

This week’s segment, titled Tricks of the Trade, used a hidden-camera investigation to see what insurance agents say — and what they don’t — when they think they are alone with a senior. The show promised, “Join us in a ground-breaking hidden-camera investigation, as we go behind the scenes to uncover the techniques they use: inside sales meetings — where we catch the questionable pitches; inside training sessions — where we discover agents being taught to scare seniors; and, finally, inside senior’s homes to reveal the tricks some agents use to puff their credentials to make a sale.”

If you would like to see related articles and follow-up from the show, you can watch the segment online, read on the official transcripts, or visit some of their recommended links:

My First-Hand Experience with Equity-Indexed Annuities

Interestingly, my very first Money Guy podcast covered this exact topic. I based the discussion on an article in the December 14, 2005 Wall Street Journal titled, Why Big Insurers Are Staying Away From This Year’s Hot Investment Product.I’ve also had experience dealing with individuals who have been sold unsuitable products.

In today’s show, I revisit the Wall Street Journal article, discuss my impressions of Dateline NBC’s recent investigation, and share my experience dealing with the fallout from inappropriately sold equity-indexed annuities.

Postscript: In today’s show, I mentioned a widow who came to me after investing all of her liquid assets into equity-indexed annuities. Since many of you have asked, I’m pleased to report that there was an unexpected but happy ending. Most states provide a small window of time after an insurance contract is issued for the purchaser to change their mind. This individual fortunately came to me during this period and we were able to undo the damage.

If we’d missed that window, I would have first recommended that she contact the corporate office of the insurance company that issued the product. Then, I would have suggested engaging a lawyer and filing a complaint with the state insurance regulator.

Note: Please know I’m not trying to pick on insurance agents. I’m a big fan of insurance and always recommend dealing with a reputable agent as part of an overall financial plan. Unfortunately, many agents either don’t understand their products and appropriate uses or don’t care about doing what’s right for their client.

My advice? Find a local agent you trust, check their credentials and references, ask specifically how they get paid, and challenge their advice with informed questions. Checking prices with an online service can also be helpful, but I prefer to do business with a real agent. In an emergency, you’ll find this can make a big difference.

FILED UNDER: Podcasts
TAGGED WITH: annuities, insurance

Connect

Subscribe

Most Recent Episodes

What I Learned From Being BROKE!!! (And Why I Wouldn’t Change It)

No one disputes the fact that being broke isn’t great. We want to spread the word that no matter where you came from, you can build wealth. In this episode, Brian and Bo share personal stories about their journey to wealth and lessons they learned along the way....

Top 10 Mind-Blowing Money Stats (2023 Edition)

These 10 money stats will blow your mind! We’ll discuss the unbelievable amount of money Americans save, when most reach millionaire status, and how many Americans carry a credit card balance. Research and resources from this episode: Most Americans don't have enough...

Wealth Multiplier Revealed: The Magic of Compound Interest!

There’s a reason why Albert Einstein called compounding interest the eighth wonder of the world! Do you know exactly how it works and how much your dollars could turn into by retirement? The Money Guy Wealth Multiplier can show anyone just how powerful every dollar...

From $0 to Millionaire in 10 Years (Is it Possible?)

How can you become a millionaire in 10 years or less? We’ll discuss common ways we see millionaires build wealth quickly, including through real estate, entrepreneurship, and the stock market. Discover how real wealth is built and why building wealth quickly may not...

Financial Advisors React to INFURIATING Money Advice on TikTok!

Brian and Bo are BACK to react to some more TERRIBLE financial TikTok advice! Join us as we take a look at some of the worst financial advice on the platform and tell you what to actually focus on in your own financial life. Enjoy the Show? Sign up for the Financial...

Investing Showdown: Dollar Cost Averaging vs. Lump Sum!

It’s a debate as old as time: what’s better, dollar cost averaging or lump sum investing? In this episode, we’ll cover the nuances and pros and cons of both, including in-depth case studies comparing investors at different times. Research and resources from this...

Is Inflation Really Ruining Your Finances? (You Won’t Like the Answer)

Inflation has changed our daily living expenses dramatically over the last few years. While we can’t control all of our expenses, there are many things in your control that can help you become a Financial Mutant and build wealth better than your peers. Enjoy the Show?...

Are $1,000 Car Payments Becoming the New Norm?!

New data shows more Americans than ever have car payments over $1,000. Is this becoming the new normal? How much could having a car payment of $1,000 be costing you for retirement? For more information, check out our Car Buying Checklist!