Annuities: Definitions, Suitability and Riders


Annuities were initially vehicles designed solely to systematically liquidate a principal sum over a lifetime. Now, modern annuities are purchased more frequently for their accumulation advantages than for their distribution characteristics. More and more, annuities are factoring into consumers’ financial plans and strategies.

This course examines the annuity concept and 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. 

Learning Objectives

Upon completion of this course, a student will be able to:

  • cite the advantages of an annuity 
  • detail how variable, fixed ,and indexed  annuities work
  • demonstrate how interest is credited with annuities 
  • explain the benefits of tax deferral using annuities
  • discuss annuity taxation with respect to cash values, withdrawals and periodic payments
  • outline for owners the annuity tools available  to help manage volatility

Designed For

Life insurance producers; financial planners and advisors

Find this course for your license:

License or Certification