Ch 12: Variable Life Insurance & Annuity Contracts
About This Chapter
Variable Life Insurance & Annuity Contracts - Chapter Summary
There's a wealth of information provided in this chapter on variable life insurance and annuity contracts. You can study lessons on how variable annuities are purchased and how separate accounts are managed. A professional instructor also reviews how annuities compare to other kinds of investment accounts. By the end of the chapter, you should be prepared to:
- Explain the pros and cons of variable annuities
- Recount features of variable life insurance
- Outline the purpose of a separate account
- Discuss valuation of a variable annuity contract
- Recall the process of exchanging variable annuities
- Explain the link between actual rate of return and assumed interest rate
- Provide an overview of FINRA Rule 2320
- Define annuitization
Knowledgeable educators have developed lessons on variable life insurance and annuity contracts that are easy to comprehend. There are many features available on our platform that make the process of learning easier, such as the short quizzes that accompany each lesson to make sure you grasp and can recall the concepts covered. For convenience, you can study this chapter on your desktop computer or mobile device.
1. What is a Variable Annuity? - Definition, Pros & Cons
In this lesson we will look at how variable annuities serve as an option for retirement investing. We will also go over some of the key pros and cons of annuities compared to other types of investment accounts.
2. Characteristics of Variable Life Insurance & Annuity Contracts
During this lesson, we will review the characteristics of variable life insurance and annuity contracts. There will be a short quiz following the lesson.
3. Separate Accounts: Definition, Purpose & Management
During this lesson, we'll take an in depth look at the separate account component of variable annuities. After completing this lesson, you'll be able to identify the many features of the separate account.
4. Valuating Variable Annuity Contracts
Variable annuities are an attractive option for investors hoping to maximize their growth potential before retirement. During this lesson, we will review how the value of these contracts is determined.
5. Purchasing & Exchanging Variable Annuities
What is a variable annuity? In this lesson, learn about the types of policies available, considerations when purchasing a new policy, and considerations when exchanging one policy for another.
6. What is Annuitization? - Definition & Overview
Annuities are purchased frequently by individual people and investors as a means to ensure a future steady stream of income. Annuities are sold by most insurance companies.
7. FINRA Rule 2320: Variable Contracts of an Insurance Company
The Financial Industry Regulatory Authority (FINRA) is responsible for regulating the activities of all U.S. investment broker/dealers. In Rule 2320, FINRA discusses the sale of variable insurance contracts.
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Other Chapters
Other chapters within the Series 6 Exam: Study Guide & Practice course
- Financial Advertising & Communications With the Public
- Describing Investment Products & Services
- Disclosing Financial Account Types & Restrictions
- Understanding Retirement Plans & Tax Advantaged Accounts
- Obtaining Basic Customer Information & Documentation
- Obtaining Customer Investment Profile Information
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Investment Portfolios & Financial Statements
- Types of Underlying Securities
- Understanding Funds, Trusts & Investment Companies
- Understanding Municipal Fund Securities
- Tax Treatment of Investment Profiles
- Disclosing Investment Product Information
- Updating Investment Customers & Retaining Customer Records
- Processing & Confirming Financial Transactions
- Resolving Investment Disputes & Customer Complaints