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Table of Contents
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Page
Evolution of Products and Practices ....................................................................... 1-10
Products and Practices ........................................................................................ 11-14
Market Overview................................................................................................. 15-19
Chapter Summary..................................................................................................... 20
II. Types of Annuities............................................................................................ 21-28
Owner / Annuitant / Beneficiary........................................................................... 30-31
The Insurance Company....................................................................................... 31-34
The Rating Services.................................................................................................. 35
Advertising Responsibilities........................................................................................ 36
Policy Cancellation and Refunds................................................................................ 36
The Insurance Producer
Disclosure.......................................................................................................... 36
Illustrations......................................................................................................... 37
Replacement...................................................................................................... 38
Free Look Period................................................................................................ 39
Importance of Reviewing Sample Contracts......................................................... 39
Chapter Summary..................................................................................................... 41
Contract Provisions That Are Typically Common to Annuities................................. 44-49
Contract Provisions That Are Typically Common to Fixed Annuities........................ 50-53
Contract Provisions That Are Typically Common to Variable Annuities................... 53-57
Contract Provisions That Are Typically Common to Indexed Annuities.................... 58-70
Chapter Summary..................................................................................................... 71
Premiums / Values / Withdrawals / Loans / Penalties............................................. 73-76
1035 Exchanges / Gifts / Sale.................................................................................... 77
Death of an Annuity Owner...................................................................................... 78
Death of an Annuitant............................................................................................... 79
Tax Effect on Beneficiary Estate Issues..................................................................... 81
Disclaimer / Sale of Liquidation.................................................................................. 81
Chapter summary..................................................................................................... 81
The Annuity Market and Buyer Demographics........................................................... 83
Reasons to Put Some Qualified Money Into an Annuity............................................... 84
IRA Rollover and IRA Transfer................................................................................ 85
SEP ....................................................................................... 87
Pension Distribution.............................................................................................. 88-89
Chapter Summary..................................................................................................... 90
Tax-deferred vs. Taxable Comparison........................................................................ 92
Taxable Equivalent Yields..................................................................................... 93-95
The Split Annuity................................................................................................. 96-97
Settlement Options.................................................................................................... 98
Advantages and Disadvantages of Annuitization Options............................................. 99
Advantages and Disadvantages of Annuities...................................................... 100-106
Comparing the Annuity to Other Investment Alternatives.................................... 106-107
Chapter Summary................................................................................................... 108
Overview of Senior Market..................................................................................... 111
Pre-retirement vs. Post-retirement Planning Overview.............................................. 112
Acting Now or Later............................................................................................... 113
Planning with Seniors.............................................................................................. 114
5 Obstacles............................................................................................................. 115
Insurance Concerns.......................................................................................... 116-117
4 Myths........................................................................................................... 118-121
Rule of 72............................................................................................................... 123
Simple Explanation.................................................................................................. 124
Purchasing Power................................................................................................... 125
What Happens to $1.00........................................................................................... 126
Social Security Questionnaire................................................................................... 127
Chapter Summary................................................................................................... 128
Overview............................................................................................................... 130
Advertising............................................................................................................. 131
Seminars................................................................................................................ 131
Direct Mailers......................................................................................................... 132
Prohibited Sales Practices........................................................................................ 133
In-Home Solicitations.............................................................................................. 133
Sharing Commissions with Attorney......................................................................... 134
Unnecessary Replacement...................................................................................... 134
Bait and Switch....................................................................................................... 135
Unauthorized Practice of Law................................................................................. 135
Penalties................................................................................................................. 137
Client Suitability
(NAIC Senior Protection in Annuity Transactions Model Act & Regulation)........ 138-144
Policy Cancellation and Refunds.............................................................................. 145
Chapter Summary................................................................................................... 146
Annuity vs. Alternatives.......................................................................................... 152
5 Benefits............................................................................................................... 153
Death and Taxes..................................................................................................... 154
Attachments
I. Products and Practices Legislation............................................................... 159-165
II. Living Trust Mills / Pretext Interviews......................................................... 166-167
III. Disclosure Requirements for Sales to Elders................................................. 169-180
Reference Section..................................................................................................... 181-184
Multi-Media Section.................................................................................................. 185-189