Parry Deering Futscher & Sparks has represented purchasers of both fixed and variable annuity products.

Many companies market fixed annuities by offering "teaser rates" which are high first year interest rate increases or bonuses that may not actually be paid. Many times the "teaser rate" is represented as continuing throughout the duration of the annuity when, in fact, it is only paid in the first year.

We have also seen companies promise in the annuity contract itself to pay interest rates based upon "market conditions" or other language indicating that the annuity is tied to the performance of the stock market. The company then actually pays interest as it deems fit regardless of the performance of the stock market.

Some companies market their variable annuity products as suitable to act as a funding vehicle for an employer’s 401(k) plan. A variable annuity is actually tied to the stock market giving the appearance of a mutual fund or other stock fund. The annuity is many times marketed as being "ideal" for funding the 401(k) plan because the growth of the investment is tax deferred. What the insurance company does not disclose is that the growth of a 401(k) investment grows tax deferred regardless of the funding vehicle because the tax laws allow it to. The variable annuity comes loaded with mortality and expense charges which actually diminish the value of the investment.