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Indexed Annuities

Topic

Retirement Savings and Income Planning

Program ID

195998

Hours

4

Format

Self-Study / Traditional course (50+minutes)

Complexity

Intermediate

Description

Indexed Annuities is designed for professional insurance producers and advisors who provide financial or retirement planning products and services to consumers. Indexed annuities have become popular funding vehicles for the accumulation of funds on a tax-deferred basis for long-term needs. This course provides a thorough discussion of these unique instruments: how they are designed, how they are used, and how the many and varied interest crediting methods calculate and apply interest. The course reviews the basics of traditional fixed and variable annuities, which provides the basis for understanding the distinct features, benefits, and limitations indexed annuities provide. Indexing methods and the adjustments insurers commonly apply to their indexed crediting methods are explored in detail. The course covers the following topics: • What Are Annuities • How Deferred Annuities Work • Basics of Fixed Annuities and Indexed Annuities • Evaluating Various Indexes and Indexing Methods • Evaluating Crediting Factors and Other Adjustments • Benefits of Indexed Annuities • Suitability • Allocation of Assets

Learning Objectives

Upon conclusion of this course, the student will be able to: describe how indexed annuities are designed and how they compare to other types of annuities list the advantages and disadvantages of indexed annuities explain the taxation issues associated with indexed annuities identify the types of consumers for whom indexed annuities are suitable demonstrate an understanding of the suitability issues that apply to indexed annuities articulate the place indexed annuities may occupy in a client’s retirement portfolio