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To sell variable lines insurance products like variable annuities, RILAs, or variable life insurance, however, you'll need to take either the Series 7 or the Series 6 as a top-off exam.
A variable annuity is also an insurance product, so it provides many important features such as a death benefit, lifetime income, and optional living benefits.
Issue: An annuity is an insurance contract sold by insurance companies. The insurer provides for either a single income payment or a series of income payments at regular intervals in exchange for a single premium (contribution) or multiple premiums (contributions) paid by the annuitant.
Variable annuities and their underlying fund investments are sold by prospectus only. The prospectuses contain the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing.
Variable annuities are complex investment products, often described as mutual funds wrapped in an insurance policy. Under a variable annuity contract, an insurance company agrees to make periodic payments to you, beginning either immediately or at some future date.
Licensing Information The person or business entity must submit acceptable proof of registration with the Financial Industry Regulatory Authority (FINRA) before authority to transact Variable Life and Variable Annuity can be granted. There is no fee to add Variable Life and Variable Annuity to the Life license.
Before buying a variable annuity, carefully read the annuity's prospectus, and ask the person selling the annuity to explain all of the product's features, riders, costs and restrictions. You should also know how your broker is being compensated, including whether they're receiving a commission and, if so, how much.
While all annuities are regulated by state insurance commissioners, variable annuities and RILAs are securities and therefore are also regulated by the SEC and FINRA. Annuities are often products investors consider when they plan for retirement. They're often marketed as tax-deferred savings products.
A variable annuity is a contract between you and an insurance company. It serves as an investment account that may grow on a tax-deferred basis and includes certain insurance features, such as the ability to turn your account into a stream of periodic payments.
We require insurance companies to give you?in one long document called a prospectus?a lot of information when you purchase a variable annuity.