Report Gives Annuity Senior Protection Ideas

To ensure the appropriateness of investments, for example, a company could take steps such as using financial planning tools, using a filtering program to help advisors select suitable annuities for investors, and requiring a review of all new account forms reporting investment objectives more aggressive than “income” for investors over a certain age, officials write in the report.

Other, product-specific practices could include prohibiting purchases of certain variable life insurance products by investors who are above a certain age, or imposing an age maximum on certain annuity riders that have actuarially little or no benefit to persons above that age, officials write.

To deal with concerns about investors’ need for access to cash, some companies require a heightened review of annuity applications for investors over a certain age in a low tax bracket or with low liquid net worth, officials write.