You may have noticed that the Annuity Purchase and Exchange Disclosure (APED) has a new look! We have enhanced almost every page (don’t worry, no pages have been added) – in order to streamline the suitability process, reduce NIGO rates and add to clients’ understanding of these complex investments. Some of the changes to note are:
- On page 2, you can now select Standard or Optional Death Benefit instead of defaulting to N/A if there is no enhanced death benefit. If there is no enhanced death benefit, simply select Standard.
- We also included a space for the LSW Rate Booster on page 2.
- On page 3, you can now indicate whether the client’s existing annuities contain a living benefit rider in a simple check box.
- On page 4, you can now disclose the type(s) of consumer debt in addition to the dollar amount.
- On page 5, you have more space to document your analysis about the difference in income riders when an exchange is taking place.
Keep an eye out for upcoming Suitability Spotlight articles in ESI Insights which will address hot topics in our space and give helpful advice for writing business. If you have any questions or comments or would like to preview a case, the Suitability team is available at 800-344-7437, Option 2, Option 5.
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