Variable Annuities and Variable Life Insurance

What this video covers

• Why variable annuities and variable life insurance are dual products requiring both a securities license and a state insurance license, and which account bears which risk
• How the separate account is protected from the insurer's general creditors in bankruptcy, and why this matters for customer assets
• The variable-annuity sales-practice rule timeline: what happens in the 7 business days after the Office of Supervisory Jurisdiction (OSJ) receives a complete application in good order
• The asymmetry between accumulation units (both number and value fluctuate) and annuity units (number is fixed, only value fluctuates), and how the Assumed Interest Rate (AIR) drives payment changes
• How living benefit riders (GMIB, GMWB, GLWB, GMAB) provide minimum guarantees without capping upside, and what mortality and expense (M&E) fees cover
• Why variable annuity withdrawals are taxed on a last in, first out (LIFO) basis, with ordinary income treatment and a 10% penalty before age 59 and a half
• The variable life insurance sales charge cap of 9% over 20 years, the guarantee of minimum death benefit but not minimum cash value, and the difference between the 10-day state free-look period (receipt) and 45-day federal withdrawal right (mailing)