Episode Details

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. This episode covers content for the National Exam. In this episode you will learn: • The accumulation phase represents the pay-in period where funds grow on a tax-deferred basis. • Withdrawals made during the accumulation phase are taxed using the last-in first-out (LIFO) method. • The annuitization phase is an irrevocable conversion of a lump sum into a guaranteed income stream. • Once a contract has been annuitized, the owner loses the right to surrender the policy or access the cash value. • The exclusion ratio is used during the payout phase to determine the tax-free portion of each payment. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep