Life Insurance and Annuities

18 Agents Life insurance agents are licensed by the State, and may represent one or more companies. If you use an agent, choose carefully. Agents earn a commission on your business, and should do more for you than just sell you a life insurance policy or annuity contract. They should assess your individual needs, answer your insurance questions, and help you establish your goals. If you are considering the purchase of a variable annuity, the agent should have an insurance license and a registration with the Financial Industry Regulatory Authority (FINRA)to sell variable products, which are considered to be securities. You should receive a prospectus describing the investment alternatives available to you. Reliability and Stability of Companies In the past, high-risk investment strategies have threatened the solvency of some companies and thus the safety of policy benefits. Be sure to check out independent rating services’ rating of any life insurance company you are considering before purchasing a life insurance policy or annuity contract. Also make sure that your life insurance company is licensed in California. Owners of annuity contracts or life insurance policies issued by companies licensed in California may be partially protected by the California Life and Health Insurance Guarantee Association (CLHIGA) in the event of the failure of the insurer. If you need further information on CLHIGA or California Insurance Code Section 1067.02 (c) that explains themonetary protection under CLHIGA, then contact the CDI via the methods provided on the last page of this brochure.