CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

The Beginner's Guide to Annuities

Icon_Self-Study
Self-Study
Icon_Level
Basic
Credits
CPE Credits
5 Credits: Specialized Knowledge

Course Description

This course examines the annuity concept, explaining what an annuity is and how it works. The mechanics of the accumulation and payout phases of an annuity are examined and sample calculations are discussed. You’ll find valuable information about:

  • Settlement options and their appropriate uses
  • Federal income tax treatment of premature withdrawals
  • Lump-sum distributions and periodic payments
  • The different annuity contracts available
  • Single vs. flexible premiums
  • Immediate vs. deferred annuities
  • Settlement options
  • And much more!

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Note the profile of a typical annuity purchaser
  • Identify the principal reasons why individuals purchase annuities
  • Cite the characteristics of an annuity
  • Identify the parties to an annuity contract and discuss their roles

Chapter 2

  • Identify the methods by which annuity premium payments are made
  • List the expenses generally associated with annuity contracts
  • Cite the characteristics of annuities including investment options, payouts, and death benefits

Chapter 3

  • Note how cash values are determined in a variable annuity
  • Cite how the various variable annuity cash value management tools help contract owners manage the volatility of variable annuity cash values allocated to variable subaccounts
  • Identify the various guaranteed living benefits available on variable annuity contracts
  • Recognize the components of the annuitization process
  • List the features and benefits of variable annuities
  • Note the factors that should be evaluated in determining the suitability of a variable annuity for a customer

Chapter 4

  • Discuss how the current crediting interest rate is determined in declared-rate annuities;
  • Distinguish bonus and multi-year guarantee annuities from other types of annuities;
  • Describe the factors that affect the effective crediting interest rate in indexed annuities;
  • Explain how index call options are used in the operation of indexed annuities; and
  • Identify the various interest crediting methods used in indexed annuities.

Chapter 5

  • Identify the income tax treatment of nonqualified annuity premiums and cash values
  • Recognize how nonqualified annuity surrenders and withdrawals are taxed
  • Calculate the exclusion ratio and its impact on the tax-free recovery of basis from periodic annuity payments made under nonqualified annuity contracts
  • Note the income and estate tax treatment of death benefits received under a nonqualified annuity contract

Chapter 6

  • Define suitability in the context of an annuity transaction
  • Note the client information required to perform an appropriate annuity suitability analysis
  • List the types of information that must be disclosed when making an annuity recommendation
  • Identify those situations in which an insurance producer has no suitability obligation to the client
  • Cite the suitability recordkeeping obligations to which insurance producers are subject in connection with recommended annuity transactions

Course Specifics

Course ID
8162544
Revision Date
January 28, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220

Course Instructor

Paul J. Winn Headshot
Paul J. Winn CLU ChFC

Paul Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.

The Beginner's Guide to Annuities

Expert Instructors
Format
CPE CREDITS
5 Credits: Specialized Knowledge

$145.00$175.00

Clear
Icon_Self-Study
Self-Study
Icon_Level
Basic
Credits
CPE Credits
5 Credits: Specialized Knowledge

Course Description

This course examines the annuity concept, explaining what an annuity is and how it works. The mechanics of the accumulation and payout phases of an annuity are examined and sample calculations are discussed. You’ll find valuable information about:

  • Settlement options and their appropriate uses
  • Federal income tax treatment of premature withdrawals
  • Lump-sum distributions and periodic payments
  • The different annuity contracts available
  • Single vs. flexible premiums
  • Immediate vs. deferred annuities
  • Settlement options
  • And much more!

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Note the profile of a typical annuity purchaser
  • Identify the principal reasons why individuals purchase annuities
  • Cite the characteristics of an annuity
  • Identify the parties to an annuity contract and discuss their roles

Chapter 2

  • Identify the methods by which annuity premium payments are made
  • List the expenses generally associated with annuity contracts
  • Cite the characteristics of annuities including investment options, payouts, and death benefits

Chapter 3

  • Note how cash values are determined in a variable annuity
  • Cite how the various variable annuity cash value management tools help contract owners manage the volatility of variable annuity cash values allocated to variable subaccounts
  • Identify the various guaranteed living benefits available on variable annuity contracts
  • Recognize the components of the annuitization process
  • List the features and benefits of variable annuities
  • Note the factors that should be evaluated in determining the suitability of a variable annuity for a customer

Chapter 4

  • Discuss how the current crediting interest rate is determined in declared-rate annuities;
  • Distinguish bonus and multi-year guarantee annuities from other types of annuities;
  • Describe the factors that affect the effective crediting interest rate in indexed annuities;
  • Explain how index call options are used in the operation of indexed annuities; and
  • Identify the various interest crediting methods used in indexed annuities.

Chapter 5

  • Identify the income tax treatment of nonqualified annuity premiums and cash values
  • Recognize how nonqualified annuity surrenders and withdrawals are taxed
  • Calculate the exclusion ratio and its impact on the tax-free recovery of basis from periodic annuity payments made under nonqualified annuity contracts
  • Note the income and estate tax treatment of death benefits received under a nonqualified annuity contract

Chapter 6

  • Define suitability in the context of an annuity transaction
  • Note the client information required to perform an appropriate annuity suitability analysis
  • List the types of information that must be disclosed when making an annuity recommendation
  • Identify those situations in which an insurance producer has no suitability obligation to the client
  • Cite the suitability recordkeeping obligations to which insurance producers are subject in connection with recommended annuity transactions

Course Specifics

Course ID
8162544
Revision Date
January 28, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220

Course Instructor

Paul J. Winn Headshot
Paul J. Winn CLU ChFC

Paul Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.

The Beginner's Guide to Annuities

Expert Instructors
Format
CPE CREDITS
5 Credits: Specialized Knowledge

$145.00$175.00

Clear