Annuity Suitability Training
Table of Contents
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Adequate Communication Skills |
6 |
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Investment Vehicles |
6 |
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What exactly is an annuity? |
6 |
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The Test of Time |
7 |
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Finding the Right Products |
8 |
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How Annuities are Used |
9 |
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Safety of Investment |
9 |
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Funding Retirement |
10 |
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Structured Settlements |
10 |
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Beneficiary Designated Money |
11 |
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Probate Avoidance |
11 |
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Old Money; New Money |
11 |
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Annuity Participants |
11 |
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Types of Annuities |
12 |
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Categorizing Annuities |
12 |
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Benefit Payment |
13 |
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Immediate Annuities |
13 |
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Deferred Annuities |
13 |
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Split Annuities |
14 |
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Payment Methods |
14 |
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Single Premium Annuities |
14 |
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Flexible Premium Annuities |
14 |
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Annuity Type Based on Policyowner Risk |
15 |
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Variable Annuities |
15 |
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Fixed Annuities |
16 |
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Declared Rate Fixed Annuities |
16 |
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Indexed Fixed Annuities |
16 |
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Two-Tiered Annuities |
17 |
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Fixed Rate Annuities |
18 |
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Equity Indexed Annuities |
20 |
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Variable Annuities |
23 |
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Annual Expenses |
24 |
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Funding Variable Annuities |
24 |
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Variable Annuity Death Benefit |
25 |
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Contract Provisions Affect Consumers |
25 |
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Annuity Surrender Values and Penalties |
26 |
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Guaranteed Rates of Return |
28 |
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Important EIA Fact |
29 |
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Index Crediting |
31 |
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Participation Rates |
32 |
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Averaging |
33 |
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Caps |
34 |
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Spreads, Margins and Administrative Fees |
34 |
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Returns |
34 |
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Indexing Formulas |
36 |
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Annual Reset Indexing Method |
37 |
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High Water Mark Indexing Method |
37 |
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Point-to-Point Indexing Method |
38 |
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Multiple EIAs with Diversified Indexing Methods |
39 |
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Withdrawing Annuity Funds |
39 |
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Payout Options |
40 |
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Nonhuman Payees Under a Settlement Option |
41 |
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Lifetime Income Payout Option |
41 |
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Life Annuity, Period Certain Payout Option |
42 |
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Joint-and-Last-Survivor Payout Option |
43 |
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Required Distribution |
43 |
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Taxation |
43 |
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Qualified and Non-qualified Annuity Annuitization |
44 |
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ERISA and Tax Favored Retirement Plans |
45 |
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Using Annuities in Tax Favored Retirement Plans |
45 |
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IRS Requirements for Annuity Funding |
46 |
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Taxation of Qualified Annuity Distributions |
46 |
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Financially Sound Insurers |
47 |
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State Guaranty Associations |
49 |
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Suitability Standards |
49 |
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Determining Suitability |
50 |
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Sales Practices |
51 |
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Product Replacement |
52 |
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Deceptive Sales Practices Forbidden |
52 |
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Full Disclosure |
52 |
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Product Knowledge |
52 |
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Identifying Suitability Issues |
53 |
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It is Not a Liquidity Issue but Rather a Suitability Issue |
54 |
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A Comprehensive Financial Plan |
55 |
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Tax-Deferred Status |
59 |
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Tax-Deferral Exception |
60 |
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Exchanges |
60 |
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Annuity Gifts |
61 |
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Other Tax Issues |
61 |
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Annuities Are (Sometimes) Protected Assets |
61 |
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Probate |
63 |
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Sometimes an Annuity is a Bad Idea |
63 |
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Considering Applicant Age |
63 |
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Surrender Penalties |
63 |
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Grasping Fundamental Aspects of the Product |
64 |
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Basic Information Requirements |
65 |
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Terminology for Equity Indexed Annuity Products |
66 |
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General Contract Provisions |
70 |
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Entire Contract |
70 |
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Changes and/or Waivers |
70 |
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Misstatements |
70 |
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Required Reporting |
71 |
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State Law |
71 |
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Claims of Creditors |
72 |
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Other Contract Items |
72 |
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Additional Payments |
72 |
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In Conclusion |
73 |
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United Insurance Educators, Inc.
PO Box 1030
Eatonville, Washington 98328
(253) 846-1155
Email: mail@uiece.com