Description
This course discusses the suitability issues with respect to the sale and exchange of declared-rate, fixed, variable and equity indexed annuities contracts. It examines the issues of surrender charges, crisis waivers, applicant age, objectives, risk tolerance and other factors to be considered in the suitability analysis.
Learning Objectives
Upon completion of this course, you will be able to: Explain the concept of suitability; Discuss how an annuity operates with respect to accumulation and annuitization; Explain the tax treatment of annuity premiums, cash value growth, withdrawals and periodic income payments; Describe the basis of annuity classification as immediate or deferred, single premium or flexible premium, fixed or variable, and qualified or nonqualified; Explain the characteristics, advantages and disadvantages of fixed and variable annuities during their accumulation period and after annuitization; Identify the characteristics of a suitable declared-rate fixed annuity purchaser; Identify the characteristics of a suitable equity indexed annuity purchaser; and Identify the characteristics of a suitable variable annuity purchaser.