Suitability of Trust-Owned Annuities
The annuity suitability standards of EquiTrust Life Insurance Company are based on the NAIC Suitability in Annuity Transactions Model Regulation. The Company’s standards include policies and procedures designed to ensure all products sold meet the individual needs of Owner/Applicants and their personal objectives and financial needs. The purpose of this communication is to provide guidance on the suitability of applications written with trust ownership.
Grantor Trusts: An application for a trust-owned annuity will, generally, be viewed as unsuitable when the Grantor of the Trust and the Annuitant are not the same person. For other trust-owned annuity applications, the Trust Certification Form should be submitted with the application and other required new business forms. Suitability will be reviewed as with any other application.