Using the latter criterion, we will identify and discuss the two broad annuity markets defined by the source of funds – non-qualified and qualified.
Before we begin, let's discuss the "longer-term" aspect of deferred annuities. As we have emphasized, deferred annuities are designed to meet longer-term needs. The definition of "longer-term," however, is relative to the prospect's age. For a prospect age 55, longer-term may mean five to 10 years. For a prospect age 40, longer-term may refer to needs that will not arise for 20 or 25 years.
In either event, a prospect with $5,000 in a CD earmarked for next year's vacation is not an annuity prospect, unless other sources of funds are available. Keep this distinction in mind as you learn about the non-qualified annuity market.
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