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WorksheetsOCT19 SPIA Review
Total questions: 18
Worksheet time: 9mins
What Kind of Risks Does SPIA Protect against
Market Risk
Income Risk
Longevity Risk
FOMO
Clients have access to their funds in case there are unplanned needs for additional funds. This is known as what?
Liquidity feature
Low cost Fund Platform
First in last out
Exclusion Ratio
OPTIONAL FEATURE THAT ALLOWS CLIENTS TO INCREASE PAYMENTS ANNUALLY TO HELP OFFSET INFLATION
Cost-of-Living Adjustment
Annual Roll-up
Anniversary Step-up
Inflation hedging
Whats the longest a SPIA payment will last
5 years
30 Years
Lifetime
Until the Contract Value goes to zero
What is the EARLIEST age a Client can begin to draw Social Security?
62
65
71
55
In SPIA, clients can elect to have their payments increase annually at a steady rate. What feature provides this benefit
Cost of Living Adjustment
Linc
Cost of Living Allowance
GMWB
What payout option can Clients elect to in order to delay taking Social Security
Term Certain
Cost of Living Adjustment
Return of Premium
Term Captain
Identify the Client need:
Client is considering applying for Social Security before his/her full retirement age – the age he/she is eligible to receive 100% of retirement benefits.
Maximizing Social Security income payments
Balancing the need for asset growth and immediate income
Spousal longevity protection
Identify the Client Need:
• Although a client is retiring, he/she wants portfolio to continue growing.
• He/she needs a source of immediate guaranteed income.
• You want to help client balance desire for asset growth with need for immediate income.
Balancing the need for asset growth and immediate income
Maximizing Social Security income payments
Spousal longevity protection
Identify the Clients Need:
• Married couple has saved for retirement and now wants to make sure their money will provide them both with enough income for life.
• They’re especially concerned about their longevity.
• You want them to feel confident that if either passes away, the other will be taken care of.
Spousal longevity protection
Balancing the need for asset growth and immediate income
Maximizing Social Security income payments
What is the tax Treatment of the cost basis and gains in NQ SPIA distributions
Regular income
Short Term Capital Gains
Long Term Capital Gains
Exclusion Ratio
What is the tax treatment of Qualified funds for SPIA distributions
Exclusion Ratio
Regular Income
Long Term Capital Gains
Short Term Capital Gains
What is the Maximum issue Age for SPIA
65
591/2
80
85
What is the Minimum amount a client can purchase a SPIA contract.
$10,000
$25,000
$15,000
$3,000,000
What is the Maximum allowed in a single SPIA contract
$3,000,000
$1,000,000
$30,000,000
$5,000,000
How often can a client receive income payments?
Monthly
Semiannually
Quarterly
Annually
In SPIA, When can you begin to receive guaranteed income payments?
Anytime between 30 days and 365 days after the contract is issued
Same Day
45 Days After Contract Issue Date
With SPIA What is the minimum Payment Amount?
$100
$250
$500
