Variable Annuities: The Investment Product That’s Usually Wrong for Almost Everyone
Let me start with a controversial statement: variable annuities are one of the most oversold and misunderstood investment products in America. They’re complex, expensive, and usually inappropriate for the people who buy them.
If your broker or insurance agent has recommended a variable annuity, you need to understand what you’re really getting into.
What Is a Variable Annuity?
A variable annuity is part investment account, part insurance policy. You put money in, it gets invested in mutual fund-like subaccounts, and the insurance company promises to pay you income later (usually in retirement).
Sounds simple, right? It’s not.
The Fee Problem
Variable annuities are notorious for their high fees. You might pay:
– Management fees (1-2% annually)
– Insurance charges (1-1.5% annually)
– Surrender charges (up to 10% if you withdraw early)
– Individual subaccount fees (0.5-2% annually)
Add it all up, and you could be paying 3-4% in fees every year. That’s a huge drag on your returns.
The Complexity Problem
Variable annuities come with features like:
– Death benefits with complicated formulas
– Living benefits with confusing terms
– Surrender periods that can last 10+ years
– Tax rules that are different from regular investments
Most people who buy them don’t understand what they’re getting.
Who Actually Needs Variable Annuities?
Here’s the truth: very few people actually need variable annuities. They might make sense if you:
– Have maxed out all other tax-advantaged accounts
– Are in a very high tax bracket
– Need the specific insurance features
– Can afford to tie up your money for many years
But for most people, simpler and cheaper alternatives are better.
Better Alternatives
Instead of a variable annuity, consider:
– Low-cost index funds in a taxable account
– Maximizing contributions to 401(k)s and IRAs
– Simple immediate annuities if you need guaranteed income
– A diversified portfolio of stocks and bonds
These alternatives are usually cheaper, more flexible, and easier to understand.
Why Brokers Push Annuities
Variable annuities often pay commissions of 5-7%, compared to 1% or less for mutual funds. This creates a huge incentive for brokers to recommend them, even when they’re not appropriate.
I’ve seen too many cases where retirees were sold annuities they didn’t need, couldn’t afford, or didn’t understand.
Red Flags
Be suspicious if:
– The annuity is being sold as an investment rather than insurance
– You’re told it’s “guaranteed” to outperform other investments
– The salesperson downplays the fees or surrender charges
– You’re pressured to move money from existing retirement accounts
– The benefits seem too good to be true
What to Do If You’ve Been Sold an Inappropriate Annuity
If you believe you were sold a variable annuity that wasn’t suitable for your situation, you might have legal options. Common problems include:
– Selling annuities to elderly investors who don’t understand them
– Recommending annuities inside retirement accounts (where the tax benefits are wasted)
– Failing to disclose high fees and surrender charges
– Misrepresenting the benefits or guarantees
The Bottom Line
Variable annuities are complex, expensive products that are appropriate for very few investors. Don’t let high-pressure sales tactics or promises of guaranteed returns convince you to buy something you don’t need.
If you’ve been harmed by an inappropriate annuity sale, an experienced securities attorney like Bob Pearce can help you explore your options for recovery.
Remember: the best investment is usually the one you can understand and afford. Variable annuities are rarely either.
Due to the high volume of cars on the roads in Texas, there is unfortunately a high rate of automobile accidents that cause injuries or deaths. If a car accident results merely in property damage to the car, then you can probably handle the situation yourself. More about Car Accident Lawyer here
However, if you were injured or a loved one was killed in a car wreck in Texas, you will likely need the help of a Texas auto accident attorney in order to see that you are fairly compensated. Insurance companies know that you are disoriented immediately after a car accident, and they will often try to use this to their advantage and cajole you into saying something that could damage your chances of securing fair compensation or possibly try to get you to accept a settlement that is far less than you deserve.
In exchange for this settlement, the victim must sign an agreement that he or she is forfeiting the right to sue in the future. Our auto accident attorneys can prevent you from being hustled by the insurance company.
We will handle all communications, preventing you from damaging your case by saying something you shouldn’t or accepting a settlement that is unfair. With 30 years of experience handling auto wreck litigation, we know how much your case is really worth and how to make sure all liable parties are held financially accountable.
Why You Should Contact our Law Firm Immediately
While the statute of limitations after a negligent injury or wrongful death in Texas is two years, you need to act immediately to give yourself the best chance of securing the compensation you deserve if you’ve been injured or a family member has been killed by someone else’s negligence. Success with a personal injury or wrongful death claim requires evidence, and that evidence can only be found through a quick and thorough investigation. In most accident situations, the evidence begins to fade away or become altered quickly. Thus, you should contact our Law Firm today, so that you give yourself the best opportunity of delivering justice and recovering the compensation to which you are entitled. We’ve taken on every major insurance company in the state and compiled a long track record of success.
For a free consultation, call our Law Firm any time at for a free consultation. We’re happy to listen to your story, answer your questions, and advise of your legal options, so call us now.
What to Do if You Are in an Uber Accident (As an Injured Passenger)
This guide explains exactly what to do if you are an injured passenger in an Uber accident: You should:
Remove Yourself From Immediate Danger, then Call 911
Ensure the Scene Is Safe and Report the Accident
Document the Accident Scene
Notify Uber About the Accident
Seek Follow-Up Medical Treatment
Consult with an Uber Accident Lawyer
File a Claim with the Appropriate Insurance Companies
Keep Detailed Records of All Expenses
1. Remove Yourself From Immediate Danger, then Call 911
If you are injured in an Uber accident, your priority is to ensure your safety and health by calling 911 and requesting emergency assistance.
Even if injuries seem minor, some conditions (like internal injuries or concussions) may worsen without immediate medical attention.
Emergency responders and medical professionals will document your injuries, which serves as crucial evidence in any legal or insurance claims.
What to Do:
Inform the dispatcher of the accident, your location, and any visible injuries.
Allow paramedics to assess you and follow their recommendations for further treatment (e.g., transport to a hospital if needed).
Keep copies of all medical records and bills related to your treatment.
2. Ensure the Scene Is Safe and Report the Accident
If you are not critically injured and can safely move, ensure the accident scene is secure and report the crash to the police.
Why This Is Important:
Safety First: Removing yourself from immediate danger (e.g., an active roadway) reduces the risk of further harm.
Police Report: A formal accident report is a critical piece of evidence in determining fault and liability.
What to Do:
Move to a safe location away from traffic, if possible.
Report the accident to the police and provide accurate details about what happened.
Request a copy of the police report or the officer’s badge number and contact details for follow-up.
3. Document the Accident Scene
If your injuries allow, collect as much evidence as possible from the accident scene. This documentation will help establish fault and support your claim.
Why This Is Important:
Preserve Evidence: Key details can be lost as time passes, especially once vehicles are moved, or witnesses leave.
Support Your Case: Photos and notes provide visual proof for insurance negotiations or legal proceedings.
What to Do:
Take photos of:
The vehicles involved (including the Uber vehicle) and any visible damage.
The license plates of all vehicles involved.
The surrounding area, including road signs, traffic signals, and weather conditions.
Any visible injuries you’ve sustained.
Write down:
The names, contact details, and insurance information of the Uber driver and other drivers involved.
The make and model of the vehicles involved.
Witness contact information, if available.
4. Notify Uber About the Accident
Contact Uber to report the accident as soon as possible. Uber requires passengers to notify them of any accidents during a trip.
Why This Is Important:
Insurance Activation: Uber’s insurance coverage for accidents is only activated if the company is informed about the incident.
Documentation: Reporting the accident creates a formal record that Uber can reference during your claim.
What to Do:
Open the Uber app and navigate to the “Help” section.
Select the trip during which the accident occurred and report the issue using the accident report feature.
Be concise but truthful about the events and injuries.
5. Seek Follow-Up Medical Treatment
Even if you were treated at the scene or hospital, follow up with your doctor to ensure your injuries are properly addressed and documented.
Why This Is Important:
Delayed Symptoms: Some injuries, such as whiplash or internal trauma, may not show symptoms immediately.
Comprehensive Records: Ongoing medical documentation strengthens your compensation claim.
What to Do:
Schedule an appointment with your primary care physician or a specialist.
Attend all recommended follow-ups, therapy sessions, or treatments.
Keep detailed records of medical visits, prescriptions, and any work missed due to your injuries.
6. Consult with an Uber Accident Lawyer
Once your immediate medical and safety concerns are addressed, consult an experienced Uber accident attorney to protect your legal rights and handle the claims process.
Why This Is Important:
Understanding Liability: Uber accidents involve complex liability issues due to the involvement of multiple parties (Uber, the driver, and other motorists).
Maximizing Compensation: A lawyer can negotiate with Uber’s insurance providers and ensure you receive fair compensation for medical expenses, lost wages, and pain and suffering.
What to Do:
Research attorneys with expertise in rideshare accident cases.
Schedule a free consultation to discuss your case and the potential compensation you may be entitled to.
Provide your lawyer with all relevant documents, including medical records, the police report, and evidence from the accident scene.
7. File a Claim with the Appropriate Insurance Companies
Determine which insurance policies apply to your case and file claims promptly.
Why This Is Important:
Uber’s Insurance Coverage: Uber provides liability coverage of up to $1 million for accidents that occur while a trip is in progress.
Multiple Policies: In some cases, the Uber driver’s personal insurance or other drivers’ insurance may also be applicable.
What to Do:
Notify Uber’s insurance provider (you can ask Uber for their insurance company’s contact details).
File a claim with the at-fault driver’s insurance company, if applicable.
Provide all necessary documentation, such as medical records and evidence from the accident scene.
8. Keep Detailed Records of All Expenses
Maintaining thorough records of all accident-related expenses is crucial for receiving appropriate compensation.
Why This Is Important:
Proof of Losses: Accurate documentation ensures you are reimbursed for all costs related to the accident.
Future Costs: Keeping records helps calculate ongoing expenses, such as therapy or lost income.
What to Do:
Track all medical expenses, including co-pays, prescriptions, and rehabilitation costs.
Document lost wages if your injuries prevent you from working.
Save receipts for other accident-related expenses, such as transportation or home care services.
FAQs
Will Uber cover me in an accident?
Yes, Uber will cover you in an accident if you are injured as a passenger during an active trip. Uber provides liability insurance coverage for accidents while a ride is in progress. This coverage applies as long as the driver was logged into the Uber app and actively transporting passengers.
Does Uber give you money when you’re in an accident?
Uber itself does not directly give you money after an accident. However, its insurance policy, provided by third-party insurers, may compensate you for medical expenses, lost wages, and other damages if you file a claim. Compensation depends on the extent of your injuries and the circumstances of the accident.
Can you sue Uber if you get in an accident?
You can sue Uber if you get in an accident, but it is typically challenging because Uber classifies its drivers as independent contractors. However, you can file a claim against Uber’s insurance policy. In certain cases involving negligence on Uber’s part, such as failing to vet the driver properly, a lawsuit may be possible.
How much are Uber accident settlement amounts?
The settlement amount for an Uber accident varies based on the severity of your injuries, medical expenses, lost wages, and pain and suffering. Minor injuries may result in settlements of a few thousand dollars, while severe or catastrophic injuries can result in settlements exceeding $100,000 or more. Each case is unique and depends on the specific circumstances.
Is Uber responsible for accidents?
Uber is not directly responsible for accidents caused by its drivers because they are classified as independent contractors. However, Uber’s insurance policy covers damages if an accident occurs during an active trip. In cases where Uber’s negligence, such as inadequate driver background checks, contributed to the accident, the company may be held liable.
Attorney Advertising: The information contained on this page does not create an attorney-client relationship nor should any information be considered legal advice as it is intended to provide general information only. Prior case results do not guarantee a similar outcome.
