Chapter 10: Variable Products

Chapter summary

Chapter 10 covers variable annuities and variable life insurance. Variable annuities are securities — registered with the SEC, sold with a prospectus. During the accumulation phase, investors own accumulation units; at annuitization, those convert to annuity units. The investor bears investment risk in the separate account. Variable life insurance ties both the death benefit and cash value to separate account performance. A 1035 exchange allows tax-free transfer between annuity contracts.

Key concepts

• Annuities
• Fixed versus Variable Annuities
• How Deferred Annuities Work
• Taxation of Variable Annuities
• Variable Product Regulation
• Variable Life Insurance
• Equity-Indexed Annuities (EIA)
• Annuities
• Fixed versus Variable Annuities
• How Deferred Annuities Work
• Taxation of Variable Annuities
• Variable Product Regulation

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