Annuity Suitability: Issues and Standards

Overview

The close association between annuities and retirement naturally makes seniors a primary market for the product. Producers must pay especially careful attention to suitability when seniors are involved. Primarily for that reason, the annuity has become the object of regulatory scrutiny in recent years. But suitability is not a seniors-only issue, and annuity standards presented in this course apply to all annuity sales and to consumers of all ages, unless otherwise noted.

The purpose of this course is to provide an understanding of annuity suitability, and the guidelines and standards by which suitable annuity products are recommended. The course addresses the issue of suitability and the problems that can arise when annuities are inappropriately sold. It explores the information necessary to determine a suitable annuity transaction, how to analyze that data, and how to ensure client understanding and acceptance of an annuity recommendation.

Learning Objectives

Upon completion of this course, students will be able to:

  • understand the meaning of “suitability” and its application to the marketing and sale of annuity products
  • know key standards relevant to the marketing and sale of any and all annuity products
  • understand why adopting annuity suitability standards will benefit one’s business practice
  • explain how suitability is determined for individual annuity prospects and clients, and why the issue of suitability is especially sensitive when the sale involves senior consumers
  • describe the basic suitability requirements and standards mandated by regulatory bodies and industry groups
  • know how to ensure compliance with suitability standards and requirements in one’s business practice

Designed For

Life and health insurance producers; financial planners and advisors
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