Terms with Category Annuities
- Inflation-Protected Annuity — Definition,
- An annuity that guarantees a return equal to or above inflation.
- Investment in the Contract — Definition,
- The principal that has been contributed to an annuity.
- Joint and Survivor Annuity — Definition,
- An annuity with multiple annuitants (usually spouses) that makes payments as long as either of the annuitants are alive.
- Life Annuity — Definition,
- An annuity that will continue to make payments until the death of the annuitant.
- Life Expectancy Method — Definition,
- A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
- Lump Sum Payment — Definition,
- One-time single-sum payment or payout.
- An extra payment made to reduce a loan.
- Maturity Guarantee — Definition,
- 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 Charge — Definition,
- A charge sometimes applied to reimburse an insurer for the risks in a policy.
- No-Load Annuity — Definition,
- 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 Rate — Definition,
- The rate at which changes in a stock index affect the profit credited to an annuity.
- Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
- Present Value Interest Factor of Annuity (PVIFA) — Acronym,
- A method used to find an annuity's present value.
- Private Annuity — Definition,
- 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) — Acronym,
- A deferred annuity funded with a single payment.
- Split-Funded Annuity — Definition,
- Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
- Straight Life Annuity — Definition,
- An annuity that stops all payments upon the annuitant's death.
- Substandard Health Annuity — Definition,
- An annuity with increased income payments for people with shorter life expectancies due to medical conditions.
- Surrender Charge — Definition,
- A charge levied when a life insurance policyholder cancels his or her policy.
- Surrender Rights — Definition,
- The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
- Survival Analysis — Definition,
- A statistical analysis of how likely someone or something will survive to a set date.
- Tax Deferred Annuity (TDA) — Acronym, Important,
- A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
➥ More commonly known as a Tax Sheltered Annuity (TSA). - Tax Sheltered Annuity (TSA) — Acronym, Important,
- An arrangement where employees are given the option to make tax-deferred contributions to an annuity set up by their employer.
➥ See also Tax Deferred Annuity (TDA). - Tax-sheltered — Definition,
- A savings or investment plan that offers significant tax savings.
- Variable Annuity (VA) — Acronym,
- An annuity where the payments received by the annuitant in the income phase of the annuity vary depending on how well the insurer's investment portfolio has performed.
- Wraparound Annuity — Definition,
- An annuity that allows the annuitant to control how funds in the annuity are invested.
2.
Inflation-Protected Annuity -
Investment in the Contract
Investment in the Contract
