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Description
This course will briefly examine the various classifications into which annuities may be categorized, their common characteristics and tax treatment. More importantly, however, this course will focus principally on an annuity, referred to as a variable annuity, in which contract owners are given the opportunity to allocate their premiums and cash value to investment portfolios that may vary with respect to their investment objective, asset class, and risk.
Learning Objectives
When you have completed this course, you should be able to:
• Identify the characteristics common to all annuities and the methods by which they are classified;
• Explain how an annuitant’s periodic payments may vary under variable life annuitization;
• Define the terms used in connection with variable annuities;
• Explain how cash value growth occurs in a variable annuity;
• Identify the tools available to a variable annuity contract owner to manage cash value volatility;
• Discuss the benefits and operation of the principal additional benefit riders available under variable annuity contracts; and
• Describe the roles of the producer selling annuities to consumers and the insurance companies offering annuity products in the marketplace take on in making certain that the recommendations that are made to consumers are appropriately in consumers’ best interests.