Annuities: Definitions, Suitability and Riders _OH

Annuities: Definitions, Suitability and Riders examines the annuity concept and thoroughly explores what an annuity is and how it works. The course explains the distinctions between fixed, indexed, and variable annuities and describes the mechanics of the various products’ accumulation and payout phases. The course discusses annuity settlement options and tax treatment and offers a review of the suitability issues and standards that apply to these unique products. Also included in the course are a number of important reference and planning aids, including “Decisional Factors in Variable Annuity Suitability” and “1035 Exchange Considerations.”  

The course includes the following chapters:  

  • Introduction to Annuities and Annuity Buyers
  • Characteristics of Annuities
  • Variable Annuities
  • Types of Fixed Annuity Contracts
  • Annuity Taxation

This is an intermediate level course. Upon successful completion, students will be able to: 

  • Explain the demographics of annuity buyers
  • Cite the reasons why most annuity owners buy annuity contracts
  • Explain the characteristics of annuities in general and the benefits of tax deferral
  • Describe how variable annuities work
  • Explain the tools available to a variable annuity contract owner for managing cash value volatility
  • Demonstrate an understanding of the requirements for variable annuity suitability
  • Demonstrate how interest is credited under specific fixed annuity contracts, including bonus annuities, multi-year guarantee annuities and interest indexed annuities
  • Explain how equity indexed annuities work
  • Discuss annuity taxation with respect to cash values, withdrawals and periodic payments

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