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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Annuities

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Accumulation Period — Survival Analysis
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Tax Deferred AnnuityWraparound Annuity
accumulation period (AP)Definition (Investments, Annuities, Financial-banking)
The period where an investor continues to put money into his or her investment(s).
annuitantDefinition (Investments, Annuities, Financial-banking)
An individual who owns or is the recipient of an annuity.
annuitizationDefinition (Investments, Estate-management, Annuities, Financial-banking)
The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
annuitization optionsDefinition (Investments, Estate-management, Annuities, Financial-banking)
The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
annuityDefinition (Investments, Estate-management, Annuities, Financial-banking)
A financial instrument that disperses a number of payments over a set period of time.
annuity certainDefinition (Investments, Estate-management, Annuities)
A type of annuity that makes payments to the annuitant for a set term; payments stop when the agreed upon term ends, even if the annuitant is still alive after the term ends.
annuity considerationDefinition (Investments, Annuities)
The payment(s) made by an individual in order to accumulate value in an annuity.
annuity contractDefinition (Investments, Estate-management, Annuities)
A contract that outlines each party's responsibilities as they relate to an annuity.
annuity factor methodDefinition (Investments, Estate-management, Annuities)
A way of determining the maximum amount an annuitant can withdraw from an annuity before penalties are applied.
annuity in advanceDefinition (Investments, Annuities, Financial-banking)
When payments are made at the start of a period as opposed to the end.
annuity in arrearsDefinition (Investments, Annuities, Financial-banking)
When payments are made at the end of a period as opposed to the start.
annuity ladderDefinition (Investments, Annuities, Financial-banking)
A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.
annuity tableDefinition (Investments, Estate-management, Annuities)
A table that can be used to find the future value of an annuity.
beneficiaryDefinition (Investments, Estate-management, Annuities, Insurance)
An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.
cash refund annuityDefinition (Investments, Estate-management, Annuities)
An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
cash surrender value (CSV)Definition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
Certified Annuity Specialist (CAS)Definition (Designation, Investments, Estate-management, Annuities)
A professional who is certified to provide investment advice about annuities to clients.
charitable gift annuity (CGA)Canada
A method to facilitate charitable giving whereby an individual transfers assets to a charity in exchange for a tax deduction and lifetime retirement income payments from the charity.
  ➥  A form of planned giving.
commissioners' reserve valuation methodDefinition (Investments, Annuities, Insurance, Financial-banking)
A method used to determine the minimum statutory reserves for annuities and insurance products.
commutationDefinition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
An option given to the beneficiaries of annuities and life insurance policies that allows them to modify the frequency and size of benefit payments.
death benefit (DB)Definition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
A payment or series of payments made to the beneficiaries of a life insurance policy.
  ➥  An amount paid to a beneficiary in a life linsurance policy.
deferred annuityDefinition (Investments, Annuities, Taxation, Financial-banking)
An annuity that makes payments to the annuitant at some date in future instead of immediately.
estate planningDefinition (Investments, Estate-management, Annuities, Taxation, Insurance, Financial-banking)
The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
fixed annuityDefinition (Investments, Estate-management, Annuities)
An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
fixed premiumDefinition (Annuities, Insurance)
Insurance or annuity premiums that stay level for a specific period of time.
future value of an annuity (FVA)Definition (Investments, Estate-management, Annuities, Financial-banking)
The value of an annuity at some future date.
guarantee periodDefinition (Investments, Estate-management, Annuities)
A time period where income payments from an annuity are guaranteed.
hybrid annuityDefinition (Investments, Estate-management, Annuities, Financial-banking)
An annuity with both fixed and variable annuity elements.
immediate payment annuityDefinition (Investments, Annuities, Financial-banking)
An annuity where payments to the annuitant start immediately after the annuity has been set up.
indexed annuityDefinition (Investments, Estate-management, Annuities)
An annuity where investment performance is pegged to a stock index.
inflation-protected annuityDefinition (Investments, Estate-management, Annuities)
An annuity that guarantees a return equal to or above inflation.
investment in the contractDefinition (Investments, Estate-management, Annuities, Financial-banking)
The principal that has been contributed to an annuity.
joint and survivor annuityDefinition (Investments, Estate-management, Annuities)
An annuity with multiple annuitants (usually spouses) that makes payments as long as either of the annuitants are alive.
life annuityDefinition (Investments, Estate-management, Annuities)
An annuity that will continue to make payments until the death of the annuitant.
life expectancy methodDefinition (Investments, Annuities)
A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
lump sum paymentDefinition (Investments, Mortgages, Annuities, Financial-banking)
One-time single-sum payment or payout.
maturity guaranteeDefinition (Investments, Estate-management, Annuities, Insurance, Financial-banking, Legal-contracts)
A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
mortality and expense risk chargeDefinition (Annuities, Insurance)
A charge sometimes applied to reimburse an insurer for the risks in a policy.
no-load annuityDefinition (Investments, Estate-management, Annuities, Financial-banking)
An annuity that pays the salesperson no commission and has low fees and expenses. A no-load annuity is often sold by an insurer directly.
participation rateDefinition (Annuities)
The rate at which changes in a stock index affect the profit credited to an annuity.
payout phaseDefinition (Investments, Annuities, Taxation, Financial-banking)
The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
present value interest factor of annuity (PVIFA)Definition (Investments, Estate-management, Annuities, Financial-banking)
A method used to find an annuity's present value.
private annuityDefinition (Investments, Annuities, Taxation, Financial-banking)
An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
single premium deferred annuity (SPDA)Definition (Investments, Estate-management, Annuities, Financial-banking)
A deferred annuity funded with a single payment.
split-funded annuityDefinition (Investments, Estate-management, Annuities, Financial-banking)
Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
straight life annuityDefinition (Investments, Estate-management, Annuities)
An annuity that stops all payments upon the annuitant's death.
substandard health annuityDefinition (Investments, Estate-management, Annuities)
An annuity with increased income payments for people with shorter life expectancies due to medical conditions.
surrender chargeDefinition (Estate-management, Annuities, Insurance, Legal-contracts)
A charge levied when a life insurance policyholder cancels his or her policy.
surrender rightsDefinition (Estate-management, Annuities, Insurance, Legal-contracts)
The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
survival analysisDefinition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
A statistical analysis of how likely someone or something will survive to a set date.
  Currently Displayed — Page 1
Accumulation Period — Survival Analysis
  Next Page
Tax Deferred AnnuityWraparound Annuity

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Index of Annuities Terms

Page 1: Accumulation Period
Survival Analysis
Page 2: Tax Deferred Annuity
Wraparound Annuity

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