Annuity Suitability Training
Table of Contents
|
Adequate Communication Skills |
1 |
|
|
Investment Vehicles |
1 |
|
|
|
What exactly is an annuity? |
1 |
|
The Test of Time |
2 |
|
|
Finding the Right Products |
3 |
|
|
How Annuities are Used |
4 |
|
|
|
Safety of Investment |
4 |
|
|
Funding Retirement |
5 |
|
|
Structured Settlements |
5 |
|
|
Beneficiary Designated Money |
6 |
|
|
Probate Avoidance |
6 |
|
Old Money; New Money |
6 |
|
|
Annuity Participants |
6 |
|
|
Important Terms |
7 |
|
|
Types of Annuities |
9 |
|
|
Categorizing Annuities |
9 |
|
|
Benefit Payment |
10 |
|
|
|
Immediate Annuities |
10 |
|
|
Deferred Annuities |
10 |
|
|
Split Annuities |
10 |
|
Payment Methods |
11 |
|
|
|
Single Premium Annuities |
11 |
|
|
Flexible Premium Annuities |
11 |
|
Annuity Type Based on Policyowner Risk |
12 |
|
|
|
Variable Annuities |
12 |
|
|
Fixed Annuities |
13 |
|
|
Declared Rate Fixed Annuities |
13 |
|
|
Indexed Fixed Annuities |
13 |
|
|
Two-Tiered Annuities |
14 |
|
Fixed Rate Annuities |
15 |
|
|
Equity Indexed Annuities |
17 |
|
|
Variable Annuities |
19 |
|
|
|
Annual Expenses |
20 |
|
|
Funding Variable Annuities |
21 |
|
|
Variable Annuity Death Benefit |
21 |
|
Life & Annuity Insurance Policy Provisions Affect Consumers |
22 |
|
|
Annuity Surrender Values & Penalties |
22 |
|
|
Guaranteed Rates of Return |
25 |
|
|
|
Important EIA Fact |
26 |
|
Index Crediting |
28 |
|
|
Participation Rates |
29 |
|
|
Averaging |
30 |
|
|
Caps |
30 |
|
|
Spreads, Margins and Administrative Fees |
31 |
|
|
Returns |
31 |
|
|
Indexing Formulas |
32 |
|
|
Annual Reset Indexing Method |
33 |
|
|
High Water Mark Indexing Method |
34 |
|
|
Point-to-Point Indexing Method |
35 |
|
|
Multiple EIAs with Diversified Indexing Methods |
35 |
|
|
Withdrawing Annuity Funds |
36 |
|
|
Payout Options |
36 |
|
|
|
Nonhuman Payees Under a Settlement Option |
38 |
|
|
Lifetime Income Payout Option |
38 |
|
|
Life Annuity, Period Certain Payout Option |
39 |
|
|
Joint-and-Last-Survivor Payout Option |
39 |
|
|
Required Distribution |
40 |
|
Taxation |
40 |
|
|
|
Qualified and Non-qualified Annuity Annuitization |
40 |
|
|
ERISA and Tax Favored Retirement Plans |
42 |
|
|
Using Annuities in Tax Favored Retirement Plans |
42 |
|
|
IRS Requirements for Annuity Funding |
43 |
|
|
Taxation of Qualified Annuity Distributions |
43 |
|
Financially Sound Insurers |
44 |
|
|
State Guaranty Associations |
45 |
|
|
Suitability Standards |
46 |
|
|
|
When Consumer Information is Withheld |
46 |
|
|
Policy Affordability Today and Tomorrow |
47 |
|
|
Determining Suitability |
47 |
|
|
Sales Practices & Recommendations as Part of a Financial Plan |
48 |
|
|
Product Replacement |
49 |
|
|
Deceptive Sales Practices Forbidden |
49 |
|
|
Insurers Cannot Issue Unsuitable Products |
49 |
|
|
Full Disclosure |
50 |
|
|
Product Knowledge |
50 |
|
|
Identifying Suitability Issues |
50 |
|
It is Not a Liquidity Issue but Rather a Suitability Issue |
52 |
|
|
A Comprehensive Financial Plan |
53 |
|
|
Tax-Deferred Status |
57 |
|
|
Tax-Deferral Exception |
59 |
|
|
Exchanges |
59 |
|
|
Annuity Gifts |
59 |
|
|
Other Tax Issues |
59 |
|
|
Annuities Are (Sometimes) Protected Assets |
60 |
|
|
Probate |
61 |
|
|
Sometimes an Annuity is a Bad Idea |
61 |
|
|
|
Considering Applicant Age |
62 |
|
|
Surrender Penalties |
62 |
|
Grasping Fundamental Aspects of the Product |
63 |
|
|
|
Basic Information Requirements |
64 |
|
Terminology for Equity Indexed Annuity Products |
65 |
|
|
General Contract Provisions |
68 |
|
|
Entire Contract |
68 |
|
|
Changes and/or Waivers |
68 |
|
|
Misstatements |
69 |
|
|
Required Reporting |
69 |
|
|
Claims of Creditors |
70 |
|
|
Other Contract Items |
70 |
|
|
Additional Payments |
70 |
|
|
In Conclusion |
71 |
|
United Insurance Educators, Inc.
8213 352nd Street East
Eatonville, Washington 98328-8638
(253) 846-1155
Email: mail@uiece.com