Equity Indexed Annuities
Instructor
UIE Phone
(253) 846-1155 Email
mail@uiece.com |
Course Overview
This
course looks at equity indexed annuities. Designed for
agents with five years or more annuity experience, this is an advanced level
course. Although newer agents may be able to navigate the course,
an experienced agent is more likely to fully understand the EIA
concepts. Terminology is very important so that is also examined. Agents
must realize that terminology is connected to how the product performs. The course looks at how the
policy is put together, payout options and the differences between those
payout options. The course also discusses the possibility that a
principal loss could occur under some conditions; some of those losses are
connected to the interest earning method used. Many parts of this course
should be read multiple times in order to completely understand the
product. This is not a course that can be skimmed; it must be
completely and thoroughly read for comprehension. The course looks at the
disadvantages of EIAs as well as possible
advantages. Like all investments, they are not suitable for all
investors. Suitability is discussed at length in several sections
of the book since it is of extreme importance. These annuities are
complex; certainly more complex than traditional fixed rate
annuities. EIAs will not always perform as well as the stock
market but they do guarantee principal if funds are left to maturity. The
course discusses the long-term nature of these investments and the fact that
only excess funds (not currently needed money) should be deposited into them. This can be a worthwhile
long-term investment, but there are risks. We look at those risks
in terms of product suitability, long-term goals, and retirement vehicles. |
|
Chapter |
Subject |
Description |
|
Chapter 1 |
Investment
Vehicles |
Equity
Indexed Annuities gives a very brief history of the EIA origins, but
primarily looks at how the product performs. Although they are
fixed rate annuities, not variable annuities, they are still complex annuity
products; both agents and investors could easily misunderstand them without
product education. |
This course is not approved for suitability and best interest requirements. It is approved for continuing education.