- An annuity that allows an individual to distribute their contributions into both fixed and variable annuity elements. A hybrid annuity allows an individual to hedge their bets by allocating a portion of their funds toward a fixed annuity with a low rate of return but with guaranteed income while also allocating a portion for their funds toward a variable annuity with a higher level of risk and a potentially higher rate of return.
mixed investment, assorted stakes
Related Terms and Acronyms
- Annuity Contract — Definition,
- A contract that outlines each party's responsibilities as they relate to an annuity.
- Annuity Table — Definition,
- A table that can be used to find the future value of an annuity.
- Certified Annuity Specialist (CAS) — Acronym, Important,
- A professional who is certified to provide investment advice about annuities to clients.
- Fixed Annuity — Definition,
- An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
- Split-Funded Annuity — Definition,
- Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
- 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.