Terms with Category Annuities

  • Accumulation Period (AP) Bank, Important,
    • The period where an investor continues to put money into his or her investment(s).
  • Annuitant Bank,
    • An individual who owns or is the recipient of an annuity.
  • Annuitization Bank,
    • The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
  • Annuitization Options Bank,
    • The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
  • Annuity Bank,
    • A financial instrument that disperses a number of payments over a set period of time.
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
  • Annuity Certain Bank,
    • 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 Consideration Definition,
    • The payment(s) made by an individual in order to accumulate value in an annuity.
  • Annuity Contract Bank,
    • A contract that outlines each party's responsibilities as they relate to an annuity.
  • Annuity Factor Method Bank,
    • A way of determining the maximum amount an annuitant can withdraw from an annuity before penalties are applied.
  • Annuity in Advance Bank,
    • When payments are made at the start of a period as opposed to the end.
  • Annuity in Arrears Bank,
    • When payments are made at the end of a period as opposed to the start.
  • Annuity Ladder Bank,
    • 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 Table Bank,
    • A table that can be used to find the future value of an annuity.
  • Beneficiary Definition,
    • An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.
  • Cash Refund Annuity Definition,
    • An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
  • Cash Surrender Value (CSV) Bank, Important,
    • The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
  • Certified Annuity Specialist (CAS) Acronym, Important,
    • A professional who is certified to provide investment advice about annuities to clients.
  • Charitable Gift Annuity (CGA) Bank, Canada, Very Important,
    • 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 Method Bank,
    • A method used to determine the minimum statutory reserves for annuities and insurance products.
  • Commutation Bank,
    • 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) Bank, Very Important,
    • 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 Annuity Bank,
    • An annuity that makes payments to the annuitant at some date in future instead of immediately.
  • Estate Planning Bank,
    • The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
  • Fixed Annuity Definition,
    • An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
  • Fixed Premium Definition,
    • Insurance or annuity premiums that stay level for a specific period of time.
  • Future Value of an Annuity (FVA) Bank,
    • The value of an annuity at some future date.
  • Guarantee Period Definition,
    • A time period where income payments from an annuity are guaranteed.
  • Hybrid Annuity Bank,
    • An annuity with both fixed and variable annuity elements.
  • Immediate Payment Annuity Bank,
    • An annuity where payments to the annuitant start immediately after the annuity has been set up.
  • Indexed Annuity Definition,
    • An annuity where investment performance is pegged to a stock index.
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