Diane Nygaard has successfully represented individuals and class actions against insurance companies, recovering hundreds of millions of dollars for annuity and policy holders.
Annuities are life insurance policies, but they are sold to investors as “investments.” Commissions received by brokers who sell annuities is very high, ranging from 7% to 14% of the face value of the annuity.
Very few investment products pay brokers this well and perform so poorly for investors. By paying high commissions, life insurance companies have incentivized brokers to sell life insurance as an investment.
This also explains why so many annuities are sold to IRA accounts. Annuities make no sense for IRAs. In some cases, annuity owners have been assessed tax penalties because they could not take their required minimum distribution from their IRAs because they were invested in annuities.