Annuities

(Annuity related information found in HQ - https://b2b-hq.quility.com/page/annuity)

What is an annuity?

• Annuities are diverse financial products offered by insurance companies. They come in fixed, indexed, variable, immediate, and deferred forms, each with distinct interest crediting and payout methods.

• An annuity is essentially a contract between an individual and an insurance company, often providing guarantees such as protection from market risk, consistent growth rates, and options for lifetime income like a defined benefit plan. Variable annuities are the only type with market risk.

• Annuities can be structured as IRAs, 403(b)s, SEP IRAs, pensions, Roth IRAs, or after-tax accounts. It's important to note that even two of the same type of annuity can differ in structure. For accurate details, involving the issuing company's representative is recommended.

• Annuities can be excellent investments for one client while unsuitable for another. Matching the right annuity to a client's goals is crucial, as it's not a one-size-fits-all approach. Addressing negative press often stems from misaligned recommendations or misunderstandings. Educating clients on their annuities ensures informed decisions, leading to more beneficial outcomes.

How do I get annuity certified?

• Complete all 3 levels of training in Quility U. To sell annuities you will also need to complete any state requirements and carrier product training. If you haven't written the concept, we recommend 5-10 ride-a-longs with SME to earn as you learn. https://b2b-hq.quility.com/page/quility-u-lms

Who is QFA?

• Quility Financial Advisors act as fiduciaries with a focus on Assets Under Management. Decades of experienced paired with unique algorithmic technology led to an excellent customer experience. When an agent writes an annuity, they need to reset unsuitable funds to QFA through the digital FIF form in HQ.

Who is Advisors Excel?

• The #1 annuity distributer in the United States. Advisors excel provides superior service to agents, as well as access to proprietary products.

• Plan Qualification definitions: 401(k), 403(b), 457(b), Traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, Pension and Defined Benefit Plan, Non-Qualified. While this list is not all-inclusive of every possible retirement asset, it does capture most assets our agents uncover.

What can and can't be moved into an annuity?

• Most commonly, annuity sales are either direct transfers (ex. From IRA to IRA) or rollovers (ex. From 401(k) with a previous employer to IRA.) Being able to move funds largely depends on the plan qualification. For example, a 401(k) can be rolled over to an IRA when the employees separate from service. Some 401(k) plans allow for an in-service distribution at age 59 ½, and the employee can initiate a rollover while still employed. A 403(b) can be rolled over to an IRA at age 59 ½. A 457(b) can be rolled over to an IRA after separation of service.

What is suitability?

• Suitability guidelines consider a client's financial situation, such as Income vs. Expenses, liquidity, surrender charges, % of assets currently in annuity products, etc.

What are the different types of annuities?

• Fixed, Indexed, and Variable. Most annuities are deferred, meaning the client's intention is to wait at least 1 year before accessing any amount of funds. Under the category of Fixed, there are immediate income annuities. Our focus is deferred Indexed annuities.

What do I do with the unsuitable funds?

• Reset to QFA.

How do I become an annuity SME?

• Complete all 3 levels of Annuity Certified training in Quility U. If you haven't written the concept, we recommend 5-10 ride-a-longs with SME to earn as you learn. https://b2b-hq.quility.com/page/quility-u-lms

How do I report annuity premium in OPT?

• 5% of the premium amount. If it is a Single Premium the face amount is the 1035 exchange/transfer.

Where can I learn more about annuities?

• The 3 main ways to learn more about annuities are 1.) Annuity Certified Training, 2.) Weekly Webinars on Wednesdays at 10am ET, 3.) Ride Along appointments with experienced Subject Matter Experts.

How can I order annuity leads?

• Annuity leads will be available soon and we will have updates in HQ when they are available.

Advisors Excel-

What product do I offer when?

• We have a full suite of products based on clients' needs and concerns, whether the main objective is guaranteed income, accumulation, death benefit, or enhanced benefits to cover the cost of long-term care. From time to time, product offerings can change due to product enhancements. The best way to stay knowledgeable is by attending weekly webinars on Wednesdays at 10am ET.

How do I get contracted with Advisors Excel?

• You will receive contracting instructions at the end of level 3 in the Annuity Certified training named "How to become contracted."

QFA-Quility Financial Advisors-

Who is a potential QFA reset/client?

• Anyone with an existing retirement account over $20,000. Extremely complex high net-worth clients.

What are the annuity splits percentages with QFA?

• Annuity business under $250K-80% to the resetting agent, $250K-$750 is 70% to the resetting agent. $750K plus is 60% to the resetting agent.

When do I send a client to QFA?

• For the % of assets that are deemed unsuitable for an annuity.