Phil Cannella Complaints, Phil Cannella Lawsuit, Phil Cannella Reviews
Phil Cannella says that many Advisors selling annuities do not adequately explain the surrender charges and penalties for a consumer cancelling their contract or withdrawing more than a set amount each year. Phil Cannella explains that this is one of those things that gives annuities a bad name because Advisors are not adequately explaining these things to investors who should know and understand the ramifications of going into an annuity contract.
One of the reasons insurance carriers can offer the returns they do on annuities is because they know they can hold onto your money for a certain amount of time before they have to give it back with interest. Phil Cannella gives a very simple explanation of what surrender charges are. It is a charge levied against an investor for the early withdrawal of funds from an insurance or annuity contract, or for the cancellation of the agreement. Surrender fees act as an economic incentive for investors to maintain their contract, and they allow the insurance company to have reasonable expectations for the frequency of early withdrawals.http://www.investopedia.com/terms/s/surrenderfee.asp
Phil Cannella, as a master insurance professional, goes to great lengths to ensure every consumer he sits wit is thoroughly educated on the financial vehicles he uses before putting them into contracts.