Description
The overall objectives of this course are to educate the insurance agent about annuity structure and the various types of annuities and how and when they are applied to a client’s wealth accumulation and distribution plan. Considerable emphasis is placed on suitability and agent ethics.
Learning Objectives
• Understand the three main types of annuities and how they are similar and dissimilar in contract structure, features, risks, benefits, and suitability for a particular financial goal.
• Explore the various tax issues relating to annuities including taxation during accumulation and how taxation differs depending on how the funds leave the annuity on the back-end. Taxation at the death of the annuitant is also discussed to round out the tax related issues.
• To discuss how annuities can be used in qualified retirement plans such as: IRA, ROTH, SEP, SIMPLE, 401(k), 403(b), 457, and Defined Benefit Plans. Discussions include how taxation differences in these qualified annuities versus a non- tax qualified annuity.
• To explore the required minimum distribution rules that many retirement plans fall under as well as methods to stretch the income stream through a judicious use of the distribution requirements.
• To understand when an annuity is suitable for a client and what information needs to be gathered from a client to make the determination. This discussion includes coverage of FINRA Rules 2821 and 2310.
• To explain the structure of annuities used in specialized situations such as structured settlements and impaired risk annuities, when they are appropriate and how they differ from the traditional annuity.
• To explore the ethical environment in which these products are offered and illuminate the agent’s ethical responsibilities to the consumer and the insurance companies. Examples are used to reinforce principal concepts.