How to Structure an Annuity Contract

Overview

A challenge for annuity producers is understanding the how to properly structure the contract: designating the contract's owner, annuitant, and beneficiary in a way that supports a client's objectives. This course covers annuity contract structures, unique features, simple vs. complex structures, owner-driven vs. annuitant-driven contracts, and their impact on death benefits. It also explores common mishaps and the pros and cons of trust ownership.

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License or Certification 

 

Regulator 

 

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Objectives

  • demonstrate an understanding of the core annuity features that may be affected by annuity contract structure
  • describe the tax treatment of amounts received when a contract is annuitized versus other types of withdrawals from annuities
  • identify the elements that affect annuity structuring
  • demonstrate an understanding of the effect of annuity structure and design on the payment of death benefits
  • identify the consequences that may result from improper annuity structure
  • demonstrate an understanding of the factors to consider before recommending annuity ownership by a trust

Designed For:

Life and health insurance producers and finance professionals


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Course Information

Adding additional credit may change exam requirements.

Prerequisites:
Basic understanding of annuities
Advanced Preparation: None