LESSON 7: ANNUITIES - FIXED AND VARIABLE

The following subjects are contained within Lesson 7:

Purpose and Function of Annuities

Annuity Basics

Annuity Structure and Design - Classification of Annuities; Funding Method (Types of Annuities); Date Income Payments Begin (Immediate Annuities, Deferred Annuities); Payout Options (Straight Life Income Option, Cash Refund Option, Installment Refund Option, Life with Period Certain Option, Period Certain Option, Joint and Full Survivor Option, Joint and Two-Thirds Survivor Option, Joint and One-Half Survivor Option); Investment Configuration

Income Tax Treatment of Benefits - FIFO and LIFO Accounting; Exclusion Ratio

Uses of Annuities

Fixed Annuity - Equity Indexed Annuities; Equity Indexing Methodology (Ratcheting, High-Water Mark, Point-to-Point); The Participation Rate (Averaging, Margin or Spread)

Variable Annuities - Accumulation Units; Annuity Units; Regulation and Licensing

Comparing Variable Annuities and Fixed Annuities - Similarities; Differences

Annuity Investments By Seniors

Lesson Review - Key Concepts; Quiz

The information contained in Lesson 7 can be found in
Chapter 11 of the Florida study manual.