Section Summary
You have now reviewed the process of determining whether an annuity is actuarially sound. The steps are:
- Determine the cash value on the date of annuitization.
- Determine the total annuity payout.
- Compare the results of Step 1 to the results of Step 2.
You are not expected to memorize this process. Use the steps on your handouts or in the EPM to help you work through this process.
The next section provides an opportunity to pull together the entire process of evaluating an annuity based on the Annuity Transfer Requirement.
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Transfer Evaluation - Actuarially Sound Determination