Annuity Suitability Training
Table of Contents
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Adequate Communication Skills |
1 |
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Investment Vehicles |
1 |
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What exactly is an annuity? |
1 |
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The Test of Time |
2 |
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Finding the Right Products |
3 |
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How Annuities are Used |
4 |
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Safety of Investment |
4 |
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Funding Retirement |
5 |
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Structured Settlements |
5 |
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Beneficiary Designated Money |
6 |
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Probate Avoidance |
6 |
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Old Money; New Money |
6 |
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Annuity Participants |
6 |
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Important Terms |
7 |
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Types of Annuities |
9 |
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Categorizing Annuities |
9 |
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Benefit Payment |
10 |
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Immediate Annuities |
10 |
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Deferred Annuities |
10 |
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Split Annuities |
10 |
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Payment Methods |
11 |
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Single Premium Annuities |
11 |
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Flexible Premium Annuities |
11 |
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Annuity Type Based on Policyowner Risk |
12 |
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Variable Annuities |
12 |
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Fixed Annuities |
13 |
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Declared Rate Fixed Annuities |
13 |
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Indexed Fixed Annuities |
13 |
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Two-Tiered Annuities |
14 |
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Fixed Rate Annuities |
15 |
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Equity Indexed Annuities |
17 |
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Variable Annuities |
19 |
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Annual Expenses |
20 |
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Funding Variable Annuities |
21 |
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Variable Annuity Death Benefit |
21 |
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Life & Annuity Insurance Policy Provisions Affect Consumers |
22 |
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Annuity Surrender Values & Penalties |
22 |
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Guaranteed Rates of Return |
25 |
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Important EIA Fact |
26 |
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Index Crediting |
28 |
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Participation Rates |
29 |
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Averaging |
30 |
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Caps |
30 |
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Spreads, Margins and Administrative Fees |
31 |
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Returns |
31 |
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Indexing Formulas |
32 |
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Annual Reset Indexing Method |
33 |
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High Water Mark Indexing Method |
34 |
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Point-to-Point Indexing Method |
35 |
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Multiple EIAs with Diversified Indexing Methods |
35 |
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Withdrawing Annuity Funds |
36 |
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Payout Options |
36 |
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Nonhuman Payees Under a Settlement Option |
38 |
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Lifetime Income Payout Option |
38 |
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Life Annuity, Period Certain Payout Option |
39 |
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Joint-and-Last-Survivor Payout Option |
39 |
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Required Distribution |
40 |
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Taxation |
40 |
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Qualified and Non-qualified Annuity Annuitization |
40 |
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ERISA and Tax Favored Retirement Plans |
42 |
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Using Annuities in Tax Favored Retirement Plans |
42 |
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IRS Requirements for Annuity Funding |
43 |
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Taxation of Qualified Annuity Distributions |
43 |
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Financially Sound Insurers |
44 |
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State Guaranty Associations |
45 |
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Suitability Standards |
46 |
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When Consumer Information is Withheld |
46 |
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Policy Affordability Today and Tomorrow |
47 |
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Determining Suitability |
47 |
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Sales Practices & Recommendations as Part of a Financial Plan |
48 |
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Product Replacement |
49 |
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Deceptive Sales Practices Forbidden |
49 |
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Insurers Cannot Issue Unsuitable Products |
49 |
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Full Disclosure |
50 |
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Product Knowledge |
50 |
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Identifying Suitability Issues |
50 |
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It is Not a Liquidity Issue but Rather a Suitability Issue |
52 |
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A Comprehensive Financial Plan |
53 |
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Tax-Deferred Status |
57 |
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Tax-Deferral Exception |
59 |
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Exchanges |
59 |
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Annuity Gifts |
59 |
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Other Tax Issues |
59 |
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Annuities Are (Sometimes) Protected Assets |
60 |
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Probate |
61 |
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Sometimes an Annuity is a Bad Idea |
61 |
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Considering Applicant Age |
62 |
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Surrender Penalties |
62 |
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Grasping Fundamental Aspects of the Product |
63 |
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Basic Information Requirements |
64 |
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Terminology for Equity Indexed Annuity Products |
65 |
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General Contract Provisions |
68 |
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Entire Contract |
68 |
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Changes and/or Waivers |
68 |
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Misstatements |
69 |
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Required Reporting |
69 |
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Claims of Creditors |
70 |
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Other Contract Items |
70 |
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Additional Payments |
70 |
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In Conclusion |
71 |
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United Insurance Educators, Inc.
PO BOX 1030
Eatonville, Washington 98328-8638
(253) 846-1155
Email: mail@uiece.com