The ABC’s of Annuity Investing
In the past the annuity product primarily recommended and sold was the traditional fixed rate annuity. These are fairly easy to understand for both the selling agent and the buying consumer.
Times have changed.
Today there are a variety of annuity products being sold by a variety of institutions. Many states either have or will be instituting special annuity education requirements but even if your state is not one of them, the wise agent must fully understand all the annuity products he or she is selling or, in some cases, replacing.
The ABC’s of Annuities provides detailed information on the various annuity products available. The final chapter covers the NAIC Annuity Suitability requirement. There is also a chapter on ethics.
The ABC’s of Annuities covers not only the various annuity types, but also payout options, riders, and other aspects of the products.
Each annuity type fits in some situations, but is not suitable in others. The goal of the agent is to fully understand where his or her product is suitable so that he or she may offer consumers the types of products that will further their retirement or other financial goals. Only by becoming educated in all annuity types will the agent be able to do this.
An element of annuity education is learning how to determine whether or not a specific annuity product will benefit the buying consumer. Even well-intentioned agents cannot properly recommend a product if he or she does not understand how to determine annuity suitability. This course provides the tools to determine product suitability.