Indexed Annuities

Overview

Creating and properly allocating assets for retirement income is extremely important to consumers in planning for their future retirement needs. Because consumers may be unable to rely on pensions or Social Security, annuities have emerged as a smart and effective way to provide a guaranteed lifetime income. Whether annuities are provided through an employer-sponsored retirement plan, an individual qualified retirement plan, or an individual setting aside funds for future use, annuities are the product of choice for many people as a retirement savings vehicle.The insurance industry has been very creative in designing products for retirement savings. One of the results of this product design activity is the indexed annuity (also known as a fixed indexed annuity).

This course provides a thorough study of indexed annuities: their design, use, and how they compare to traditional fixed and variable annuities. The course also explores in detail the many different crediting methods that are used to calculate and apply interest earnings to indexed annuities. For insurance producers and financial advisors, the course will provide insight into how these products can be used to accumulate funds on a tax-deferred basis for their clients’ retirement and future financial needs.  

Learning Objectives

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

  • describe indexed annuities and how they work
  • explain their unique design features
  • compare and contrast indexed annuities to traditional fixed and variable annuities
  • describe the tax treatment of indexed annuities
  • demonstrate understanding of the advantages and disadvantages of indexed annuities and the associated suitability issues 

Designed For

Life insurance producers; financial planners and advisors

Prerequisites

A general understanding of annuities

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