Variable Annuities and Life Insurance: Rapid Fire
Chapters in this video
- 0:00 Variable annuity as security and insurance
- 1:21 Separate account versus general account
- 1:57 Accumulation units and annuity units
- 3:32 Variable universal life versus variable life
- 4:07 One-way 1035 exchange street
- 4:33 36-month look-back and churning rules
- 5:27 Surrender charge trap: $95,000 check, $40,000 taxable gain
- 6:41 Seven business days for principal approval
- 8:15 Rapid-fire exam recap
What this video covers
- Why a variable annuity is both a security and an insurance contract, and which licenses Riley the Rep needs to sell one
- How the separate account differs from the general account, which one holds investment risk, and which one backs guarantees
- The difference between accumulation units (number and value both change) and annuity units (number fixed at annuitization, value fluctuates)
- Why annuitization is irrevocable, and what that means for surrender rights and lump-sum access
- How the 1035 exchange works as a one-way street: life insurance to endowment to annuity, never reversing direction
- Why surrender charges reduce the net check but do not reduce the taxable gain, and how LIFO taxation applies to withdrawals
- The 7-business-day principal approval deadline for deferred variable annuity applications, and the 36-month look-back rule for exchanges only
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