The Importance of Continuing Education

While these 23 million individuals represent the very core of an emerging society that is more inclined to studying and learning, the remaining individuals are excluded from these learning experiences due to reasons of time, cost, or even personal issues.

Over the last few years, the number of adults who are continuing with their education has increased tremendously. This term "continuing education" describes the opportunity and process of learning new skills and acquiring knowledge that is far superior to what we are taught during our formal schooling years.

Most people opt for continued education to further their knowledge base and even their employability.

Continuing Education vs. Traditional

Usually, what we learn in all of those long, arduous years of our formal schooling are just basic skills that are good enough to help us start working, but not good enough to take us further in our careers, especially with the rapid changes and advancements in technology that demands for a more sophisticated and educated workforce.

Students who participate in continuing their education are generally working professionals who seek to further advance and promote their intellectual capabilities while still working. Since their time is divided between studies and full-time work, they have to be extremely motivated in order to succeed. One of the biggest characteristics that distinguish students who are participating in continuing education is their tendency to relate the lessons that they learn in class to their work experience.

Instructors must have the proper and appropriate practical experience and knowledge in order to address the issues and concerns of these special students. Students involved in continuing education can be very selective when it comes to choosing their courses. The courses that they choose have to be in some way relevant to their work and should be able to benefit them. If the right course is chosen, it can benefit you a great deal both educationally and professionally.

More and more adults are now engaged in continuing education that leads to formal qualifications that provide them with the adequate knowledge pertaining to a certain area of study. Furthermore, continuing education also provides us with a certain pride of accomplishment as we take our courses.

Offering an affordable, faster, and definitely more focused means of acquiring career or personal objectives, continuing education credentials can be put on resumes and presented anywhere as evidence of the individual's professional studies.

The Importance of 'Continuing Education' in the Workplace

A skilled workforce will always result in increased economic productivity. Here is how continuing education benefits the working force:

o A more skilled workforce is always more productive - These days, skills and education are seen as the most important elements of the employability and income potential of a candidate. Since the economy has shifted to one that values an educated workforce more than an uneducated workforce, employers are now seeking both educated and skilled workers. The demand for continuing education has thus increased twofold.

o Continuing education helps employers retain better employees while remaining as competitive as ever - A more educated employee will always be more productive, so companies have now started hiring employees who are continuing with their education. Continuing education can be seen as a way to retain the better, more educated employees.

With the rapid advancement of the information technology sector, continuing education will not be confined to only physical space. Distance learning through interactive media will form a major part of continuing education. The internet will also play a huge role in delivering the course materials to the students.

Insurance Continuing Education - Sales Practices For Annuities

It would be nice if there were no such thing as an "unethical" agent, but unfortunately this is not the case. Therefore, regulations are in force to correct the practices that cause irreparable harm to our industry and to our profession. The most often targeted of our population by these miscreants are the elderly for a variety of reasons. Fortunately the Departments of Insurance and legislatures - locally, state and federal - have created special types of regulation protection these citizens, and this is true in the field of annuity sales. There is a chapter of this text dedicated to the problems of the senior citizens with discussions of appropriate regulations and penalties for those who ignore or disregard these regulations. This section discusses the sales practices of agents marketing annuities to anyone regardless of age, recognizing that some of this will be repeated in the later discussion of marketing to the seniors.

ADVERTISING

For the purpose of this discussion and regulations, "advertising" applies not only to "ads" (which actually is an abbreviation for advertisement...).

brochures, newspaper and other media articles, television and radio advertising - but primarily printed material. Envelopes, stationery, business cards and any other material that is used by an agent or insurer that are designed to describe the insurance product and to attempt to encourage a purchase of the insurance product - annuity for this discussion.

Simply put, the regulations89 are intended to insure that the insurers and agents treat their clients honestly and openly. Therefore, any advertising must not mislead those who read it and act upon the information contained in the material (with special obligations to seniors, discussed later).

Advertising is also the material that is used to generate leads through reader response, generally followed by an agent calling.

It can advertise a meeting or seminar at which information is provided (also covered in detail in a separate section), or simply advertising the product of the insurer. If the advertisement is directed towards those age 65 or older, if the advertisement is used for leads, the advertiser must disclose in the advertisement that an agent may contact the person - if this is intended.

If the name of the prospect is obtained from a lead source, the source must be disclosed to those over age 65.

Even though it is in nearly all agent's contracts, it does not hurt to point out that the insurance company must give an agent permission in writing before the agent can advertise the product.

SEMINARS, CLASSES, INFORMATIONAL MEETINGS

Agents and others who market financial products, attempt to obtain new clients by holding seminars, classes or information meetings. This is particular applicable in the Senior market, and is so discussed later in the text. Basically, the regulations require that for such a meeting to be advertised (to any age) that the advertiser must disclose their intention by adding "and insurance sales presentation" immediately following the words "seminar," "class," or "informational meeting."

ADVERTISING TO THE SENIOR MARKET

Marketing of annuities to those over age 65 have stricter prohibitions, and are so set forth in the chapter "Providing Annuities to the Senior Market."

PENALTIES FOR VIOLATION OF THE REGULATIONS

Any person or business in violation of the advertising regulations is subject to a stiff fine levied by the Insurance Commissioner. The fine for the first offense is 0, for the second offense it goes to 0, and for the third and later offenses, ,000. The maximum fine for any one violation is ,000. And if you are interested, the money goes into the Insurance Fund.63C

Insurance Continuing Education - IRS Penalties on Annuities

No matter what type of annuity you purchase, it is subject to a 10 percent IRS penalty for withdrawals of growth of income made prior to age 59 . No penalty is imposed on one's principal, i.e. the money put in by the owner is the owners money.



It makes no difference how old the annuitant (or owner) of the contract is, if they die then there is no penalty. Also, the Section 72 of the IRS Code states that the penalty is waived if the annuitant (or owner) is disabled. Generally, it must be the death or disability of the annuitant, not the contract owner or beneficiary, except where the contract is owner-driven, in which case all IRS penalties will be waived upon death or disability of the owner.



If the contract is annuitized, it will avoid penalty, but such annuitization must be elected by the contract owner within one year after investing in the annuity.

The age of the owner does not have to be 59 , indeed it is irrelevant.



The final way in which the 10 percent IRS penalty can be avoided is the contract owner being age 59 1/2 or older.



Because of these penalties, annuities are usually recommended for younger people unless it is part of a retirement plan such as an IRA or pension plan or profit-sharing plan. Of course, there is always the exception of the person who has sufficient funds so that they would not have to touch the funds in case of an emergency. Annuities are ideal candidates for the investor who is near or past age 591/2.



Unless the contract is owner-driven, the owner can be any age, from newborn to centenarian. But even with the penalty, it could still make good sense for a young person(s) but would depend upon how soon the money is withdrawn and the assumed rate of growth.



Inside an annuity, the contract-holders money will grow and compound tax-deferred, not tax-free. To say it another way, any and all income tax liability can be postponed indefinitely. The death of one spouse will not trigger income taxes provided that the beneficiary was the surviving spouse. What happens when the surviving spouse remarries? The survivor can name themselves as the beneficiary and can name a new partner as the annuitant. When the last spouse dies, the beneficiary(s) can postpone taxes for up to an additional five years.



Income taxes are always due in the year in which income or growth of the fund is received. The return of principal is never taxed, regardless of who receives the money. The amount of taxes on the growth will be based on the tax bracket of the person receiving the funds. Unfortunately the taxable portion is always considered as ordinary income, and does not qualify for capital gains treatment.



As is obvious, taxes will have to be paid at some time or other. This may be considered as a negative but perhaps it is not all bad. For instance, the owner of the annuity decides when withdrawals are to be made. Therefore, one would attempt to take out the money when they are at the lowest income tax bracket, i.e. their income is the lowest. Frequently this is when the person retires.