Frequently Asked Questions

Are Annuities “Complex” or “Misunderstood?”

Complex – No
Misunderstood – Yes

Are Annuities for everyone?

No. First, find out what they are, what they are not, what they can be used for and what features and benefits they offer.

Who can sell Annuities?

A licensed insurance agent from a state insurance commissioner’s office as either a resident or non-resident agent has the authority to sell Fixed, SPIA’s Indexed, and Multi-Year guaranteed Annuities. Most states require continued education on annuities to sell or service those products in their respective states. Fixed insurance products and those licensed to sell have tight regulations and rules that the insurance companies and salespeople must abide by which include: The insurance company’s products, advertising materials, disclosures, suitability requirements and training brochures, all of which are reviewed regularly. The market conduct of the marketing organizations, (IMO, FMO, AFMO, or Agency) and their salesperson’s are all carefully monitored.

How is an annuity sold?

Fixed, Indexed, Multi-Year Guaranteed, and Immediate Annuities, like other insurance products, are sold using an insurance contract. This document is about 20 pages.

When an insurance agent sells a fixed annuity, the sales materials and product brochures will be accompanied with the following (at a minimum):
1. Annuity application
2. Annuity disclosure document
3. Annuity suitability form
4. Annuity Buyer’s Guide

What kinds of dollars can be used to buy annuities?

Dollars from maturing CDs, money market funds, checking and savings accounts, mutual fund accounts, stocks and bond funds, IRA rollovers, etc. can all be used to purchase an annuity.

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