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| Author : | Paul Winn, CLU, ChFC |
| Status : | Production |
| CPE Credits : | 5.5 |
| IRS Credits : | 5 |
| Price : | $49.45 |
| Passing Score : | 70% |
| NASBA Technical: | Yes |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 174 |
| Description : |
Annuities examines the annuity concept and explains 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. An explanation of settlement options and their appropriate uses are covered.
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| Usage Rank : | 0 |
| Release : | 2017 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed |
| Additional Links : |
Annuity Definition
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| Advance Preparation : | None. |
| Delivery Method : | Self-Study. |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 08-Feb-2017 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - NASBA Registry - IRS Enrolled Agents - 174 |
| Keywords : | Taxes, Annuities, cpe, cpa, online course |
| Learning Objectives : |
Course Learning Objectives Upon completion of this basic course, the student should be able to:
2. List the characteristics of annuities and the benefits of tax deferral 3. Explain how variable annuities work 4. Identify the cash value management tools available to a variable annuity contract owner 5. List the factors to be considered in determining variable annuity suitability 6. Calculate interest to be credited under various fixed annuity contracts 7. Explain the operation of indexed annuities 8. Describe how annuities are taxed Chapter 1 When you have completed this chapter you should be able to:
• Identify the principal reasons why individuals purchase annuities; • Explain the traditional concept of an annuity; and • Identify the parties to an annuity contract and discuss their roles. Chapter 2 When you have completed this chapter you should be able to:
• List the expenses generally associated with annuity contracts; • Explain when payout begins under deferred and immediate annuities; • Discuss how cash values are accumulated; • Describe annuity death benefits; and • Discuss the various annuitization methods available to settle annuity proceeds. Chapter 3 When you have completed this chapter you should be able to:
• Explain 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; • Describe how variable annuitization may enable a contract owner to overcome the erosion of annuity income and keep pace with inflation; • Discuss the features and benefits of variable annuities; and • List the factors that should be evaluated in determining the suitability of a variable annuity for a customer. Chapter 4 When you have completed this chapter you should be able to:
• 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 When you have completed this chapter you should be able to:
• Explain how nonqualified annuity surrenders and withdrawals are taxed; • Describe the exclusion ratio and its impact on the tax-free recovery of basis from periodic annuity payments made under nonqualified annuity contracts; and • Explain the income and estate tax treatment of death benefits received under a nonqualified annuity contract. Chapter 6 When you have completed this chapter you should be able to:
• Describe 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; and • Describe the suitability recordkeeping obligations to which insurance producers are subject in connection with recommended annuity transactions. |
| Course Contents : | Course Learning Objectives How You Will Learn Why This Information is Important and How You Can Use It Chapter 1 - Introduction to Annuities and Annuity Buyers Chapter Learning Objectives Important Lesson Points Important Note About the DOL Fiduciary Rule Introduction Demographics of Non-Qualified Annuity Purchasers Annuity Demographic Changes Why Buyers Purchase Non-Qualified Annuities The Annuity Concept Annuities in Operation Summary Chapter 2 - Characteristics of Annuities Chapter Learning Objectives Important Lesson Points Introduction Premiums Single Premium Annuities Level Premium Annuities Flexible Premium Annuities Annuity Expenses Surrender Charges M&E Charges and Investment Advisory Fees Lives Covered by the Annuity Multiple Life Annuities When Payout Begins Deferred Annuity Immediate Annuity Cash Value Accumulation Fixed Annuities Variable Annuities Death Benefits Annuitization Methods Temporary Annuity Life Annuity Summary Chapter 3 - Variable Annuities Chapter Learning Objectives Important Lesson Points Introduction Separate Account and Structured Investment Option Insurer’s General Account Supports Variable Annuity’s Fixed Account Deferred Annuity Accumulation Variable Subaccounts Comprise Insurer’s Separate Account Variable Subaccount Value may Fluctuate Daily VA Accumulation Units Structured Investment Option Managing Separate Account Volatility Separate Account Management Tools Diversification Asset Allocation Automatic Subaccount Re-balancing Fund Transfer Dollar Cost Averaging Interest Sweep Variable Annuity Death Benefits Traditional Variable Annuity Death Benefit Guarantee Variable Annuity Rollup Death Benefit Guarantee Variable Annuity Step-Up Death Benefit Guarantee Living Benefit Guarantees Guaranteed Minimum Income Benefit Guaranteed Minimum Accumulation Benefit Guaranteed Withdrawal Benefit Variable Annuity Payout (Annuitization) Phase Mechanics of Variable Annuitization Features and Benefits Suitability Compliance Requirements Combining Fixed and Variable Annuities Summary Chapter 4 - Types of Fixed Annuity Contracts Chapter Learning Objectives Important Lesson Points Introduction Traditional Declared-Rate Annuities Bonus Annuities Multi-Year Guarantee Annuities Indexed Annuities Current Interest Rates base on an Interest Index Current Interest Rates base on an Equity Index Determining Indexed Annuity Cash Value Index Call Options Interest Crediting Methods Spread Cap Rate Annuitization in Indexed Annuity Contracts Summary Chapter 5 - Annuity Taxation Chapter Learning Objectives Important Lesson Points Introduction Income Tax Treatment Premiums Cash Values Surrenders and Withdrawals Annuity Payments During Lifetime Annuitant’s Death After Annuity Starting Date Contract Owner’s Death Before Annuity Starting Date Estate Tax Treatment Summary Chapter 6 Annuity Sales Practices, Replacement and Disclosure Requirements Chapter Learning Objectives Important Lesson Points Introduction Suitability Suitability Defined Suitability Requirements Buyer Competence Replacement and Exchange Mitigation of Suitability Requirement Obtaining and Maintaining Records Disclosure Potential Surrender Period and Surrender Charge Potential Tax Penalties Mortality and Expense Risk Charges and Investment Advisory Fees Rider Charges and Features Limitations on Interest Crediting Insurance and Investment Components Market Risk Summary Appendix A - Bond Ratings Appendix B - Basic Characteristics Of Securities Appendix C - Decisional Factors in Variable Annuity Suitability References Glossary |
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