- A contract between an individual and insurer that outlines the obligations for each party of an annuity agreement. Included in an annuity contact are details about the annuity's structure (fixed or variable), early withdrawal penalties, and provisions for the annuitant's spouse and/or beneficiaries.
subsidization contract, allowance arrangement, annuity agreement, fine print
Related Terms and Acronyms
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Cash Refund Annuity — Definition,
- An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
- Contract — Definition,
- An agreement between two or more parties that can be enforced by law.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Fixed Annuity — Definition,
- An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
- Hybrid Annuity — Definition,
- An annuity with both fixed and variable annuity elements.
- 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.
- 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.
- 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.