Oregon Annuity News

Beware Of Charitable Organization Acting As Annuity Entity

Missourians should exercise caution when supporting an alleged Tennessee-based charitable organization.

At least three states have issued cease-and-desist orders against the National Foundation of America (NFOA), Franklin, Tenn. for acting as an insurance company.  NFOA is allegedly an unauthorized entity marketing an annuity product to consumers by convincing them to replace their existing annuities or cash value life insurance policies for a “tax-deductible installment plan.”  NFOA says this plan will produce guaranteed income each year while lowering taxable income by up to 50 percent, according to its Web site.

“Our department is investigating the issues surrounding the business practices of NFOA, and we will take appropriate actions to ensure the protection of Missouri consumers,” said Doug Ommen, director of the Missouri Department of Insurance, Financial Institutions & Professional Registration. “All consumers need to be aware of the potential economic dangers of dealing with this entity.”

Other states’ investigations have revealed that potential victims may be induced to lapse, forfeit, surrender, terminate, borrow on or convert an existing insurance policy or annuity contract value for a replacement policy or contract from NFOA.  Typically, legitimate donor or charitable gift annuities/policies transfer or designate some financial benefit to a designated charity, organization or institution. Read more at insurance.mo.gov.

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	Did You Know?
	Annuity tax-free exchanges, known as 1035 exchanges Section 1035 of the U.S. tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying any tax on the income and investment gains in your current variable annuity account. These tax-free exchanges, known as 1035 exchanges, can be useful if another annuity has features that you prefer, such as a larger death benefit, different annuity payout options, or a wider selection of investment choices.