The National Association of Insurance Commissioners (NAIC) recently issued a consumer alert on the unsuitable sale of deferred annuities to military veterans applying for VA benefits. The NAIC based its warning on a May report from the GAO that researched unsavory practices associated with helping veterans obtain payments from the Department of Veteran’s Affairs pension program.
Eligible vets must be age 65 or older and have a disability unrelated to their military service. Surviving spouses and dependent children also qualify. Applicants are required to meet certain income and asset criteria before they can receive the pension.
The GAO report found that some organizations, financial planners and insurance agents are promoting products that may not be suitable for a veteran in an effort to quality the individual for the VA pension. While the VA accredits financial planners and lawyers to aid veterans in the application process, it does not endorse any particular product to help pay for long-term care.