CLASS ACTION SEEKS TO HALT SALE OF INSURANCE ANNUITIES TO SENIOR CITIZENS

A class action lawsuit was filed on January 25, 2005 against Midland National Life Insurance Company on behalf of Senior Citizens. The lawsuit alleges that insurance annuities sold by Midland National were unsuitable for seniors because the annuity payment schedule did not begin until long after their life expectancy.

John Migliaccio, deceased, was 73 when he purchased a life insurance annuity from Midland National Life Insurance Company. He paid a premium of approximately $43,000.00. According to the lawsuit, Mr. Migliaccio would not receive his annuity payments until he turned 115 years old.

"I couldn't believe it until I read the clause in the policy which stated the annuity payments would not start until his 115th birthday. The aim of this class action is to stop the sale of such policies to senior citizens and to refund premiums to those who already have been sold such policies."

Midland National's annuity policies are further ill-suited for seniors because they can only withdraw minimal amounts of their money without suffering a significant surrender charge, which can be as high as 22%. "Many times seniors need to access their money for health care or other emergencies, but are hampered in doing so by penalties and surrender charges."

Our law firm believes that there is a widespread practice within the insurance industry involving sales to seniors generating billions of dollars. "This lawsuit seeks to have the Court address this problem in order to protect innocent senior citizens."

The Law Offices of Nadrich & Cohen are currently investigating cases of seniors who have purchased variable annuities against Midland National Life Insurance. If you or a loved one purchased an annuity from Midland National Life Insurance Company, please contact us immediately.