White Paper: Determining the Economic Suitability of a Variable Annuity Transaction

In this paper we propose a scoring methodology for VA transactions that is intended to improve current evaluation practices – and empower financial institutions, their advisors and clients to make more informed decisions about annuity transactions. We also provide an overview of:

  • The challenges in evaluating various features available within VA contracts.
  • A recommended approach to better allow an advisor and their firm to adequately and transparently assess the potential economic impact of a sale, exchange or termination of a VA contract.
  • How to interpret the results of the application of this approach to some common or typical cases an advisor might encounter.

Ultimately, it is our belief that by adopting the methodology we set out here, the due diligence and product selection processes for VA sales will be enhanced, thus improving the advisor’s and firm’s ability to meet compliance and regulatory obligations.

For access to the white paper, click here.