RICHMOND — Securing long-term care is a priority for many aging U.S. military veterans and their families. Many are turning to financial and estate planning services to assist them in accessing pension benefits to help with their future care.

The State Corporation Commission (SCC) reminds veterans to thoroughly evaluate any financial product and the person or company offering it before handing over their hard-earned money or benefits. Shop around, compare prices and terms, and ask questions to make sure a product is suitable for your particular needs.

Pension benefits are available to low-income wartime veterans who are 65 and older, or who are permanently or totally disabled by conditions unrelated to their military service. The Veterans Administration (VA) accredits financial planners and lawyers who can help veterans and their families fill out and file the paperwork necessary to access those benefits. However, the VA does not endorse the financial products these individuals sell to veterans to help finance their long-term care. In addition, the financial planners must be licensed or registered to sell financial and insurance products and, in many cases, those financial products must be registered with the appropriate regulator.

To determine if a person is properly licensed to sell insurance, contact the SCC’s Bureau of Insurance in Richmond at (804) 371-9041 or toll-free (in Virginia) at 1-800-552-7945 or visit its website at www.scc.virginia.gov/boi/ConsumerInquiry/.

Before doing business with any investment professional, veterans should also check with the SCC’s Division of Securities and Retail Franchising to determine whether the individual and/or security is properly registered and if there have been any complaints or disciplinary action involving that individual or his firm. To contact the Securities Division, call (804) 371-9051 in Richmond or toll-free in Virginia at 1-800-552-7945 or visit its website at www.scc.virginia.gov/srf/index.aspx.

The SCC also encourages veterans and their families to consider the following:

• Annuities – Senior veterans, in particular, should exercise caution when investing in annuities so they do not lose access to funds they may need for future expenses. An annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums paid by the owner. Annuities are most often purchased for future income and can be structured to provide income for long periods of time. Deferred annuities may not be suitable for older veterans since, with these products, the owner does not receive payment for the premium investment for several years and withdrawing funds from it early can be very costly.

The Bureau of Insurance has regulations in place that prohibit unsuitable sales of annuity products to seniors, particularly for men and women who served in the armed forces. Before signing a contract for an annuity, the Bureau of Insurance encourages veterans to make sure they understand the terms of the contract, how any money is invested, and when the benefit payments will begin, keeping in mind the consumer’s financial status, tax status, and investment objectives, among other things.

• Marketing and Sales Practices – The SCC urges veterans to beware of individuals who may claim to be veterans advocates representing a nonprofit organization or claiming to be endorsed by the Veterans Administration when, in fact, they are insurance agents trying to sell a product. In some cases, these individuals may use false or misleading designations that seem to indicate they are an expert in senior issues when they are not. Some may hold presentations at assisted living facilities presumably to help veterans complete pension applications to qualify for their VA benefits, but do not disclose that they are actually insurance agents selling annuities to help veterans qualify for the benefits.

For additional information, visit www.scc.virginia.gov/boi/fyi.aspx.

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