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The suitability process

Suitability starts with you, the agent. The process begins when you sit down with a customer. Although your customer's will turn to you for solutions, the odds are, they will not explicitly communicate their needs or concerns. As a licensed representative, it is your obligation to gather critical information to:

  • Help identify and address your customer's needs.

  • Ensure you understand their individual circumstances before you consider a fixed annuity product.

  • Appropriately present a recommendation that is suitable.

  • Ensure the product benefits match their needs before the contract is signed.

The expected outcome goal is a fixed annuity product that is appropriately paired to the customer's situation.

Determining suitability

A thorough understanding of your customer's financial objectives, investment time horizon and overall needs can help you assess relevant needs, respond to questions and correct misconceptions. The key is to ask probing questions that will reveal a realistic picture of your customer's financial situation. Consider these points and carefully evaluate the answers when determining if a First SunAmerica product is suitable:

  • What are your customer's financial objectives and time horizon?

  • What is your customer's tolerance for risk?

  • What is your customer's tax situation?

  • Does your customer have other investment or insurance products?

  • Will a fixed annuity from First SunAmerica meet your customer's needs?

  • How long is the annuity's withdrawal period?

  • Is your customer likely to need access to the principal during the early withdrawal period?

  • Does your customer fall within the appropriate issue age guidelines established for the product you wish to recommend?

  • Does the recommendation involve the replacement of another annuity contract or life insurance policy?

  • If so, would charge period charges apply?

  • Is there a waiver of charge period penalties if liquidity occurs?

  • Did you compare the features, benefits and costs of the existing product to the new product you wish to recommend?