What Your Insurance Agent Doesn't Want You to Know

About a year ago my fiancé determined to venture forth and set up some retirement planning. She wanted to do this on her own so that she could feel the sense of accomplishment that would accompany a viable plan for her future financial needs.

Not having a background in life insurance she contacted a long time friend and asked for a referral. Promptly, the lady turned her over to her son in law. He's the best insurance agent in town. He'll take real good care of you. You'll be safe and protected working with Fred (not his real name)

So Fred called her and made an appointment. At the appointment she asked him for advice and what plan would be best for her.

Don't worry he told her. I'm a financial planner. I have just the plan for you right here. You'll have money in the future and you can put $300 a month into the account. It's just like a savings account her told her.

It's simple and safe and you can trust me to look out for your best interests.

She did and signed up for his :"plan:". About a year later she asked me if she needed to add $300. every month. Being in sales, her commissions fluctuate and some months there is an abundance of extra cash, other months, not so much.

Having no idea what plan she had I asked if I could look at the paperwork. The "plan" she had did require her to deposit $300 monthly or substantial penalties would attach. I contacted the insurance company that the plan was written through and they informed me that if she wanted to surrender the "plan" she would lose up to 50% of all the money she had deposited.

Without a surrender, a failure to keep adding funds could impact her credit and she could forfeit the entire amount. So I was told.

Smelling a rat I pursued a cancellation and full refund. This was not easy and took several strongly worded letters, written in legalese, to get any results.

The lady and son in law became angry. Why would she do this to Fred? Fred will have to pay for this out of his own pocket! Fred is such a nice guy, and so forth.

A little further checking and I leaned that Fred earned almost half of the $3000. that my fiancé had sent to this "plan".

A cancellation would probably require a refund of commissions on his part. And my fiancé was barraged by angry calls and pleas top leave Fred alone. Enough was just enough.

My gal got her refund but it was not an easy task. Fred and his mother in law were disappointed. Poor Fred would have to find another sucker.

Don't let this happen to you. Be sure that you fully understand what you are getting when you buy an annuity or any life insurance related product..

The financial future you protect will be your own.