- An annuity contract where the rate of return is guaranteed to be equal to or above that of the rate of inflation. An inflation-protected annuity ensures that the purchasing power of an annuitant's retirement income does not decrease over time.
inflation shielded annuity, inflation protection rider, inflation rider
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.
- Annuity Contract — Definition,
- A contract that outlines each party's responsibilities as they relate to an annuity.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Disinflation — Definition,
- A reduction in the inflation rate as a result of either government policy or a decline in economic activity.
- Indexed Annuity — Definition,
- An annuity where investment performance is pegged to a stock index.
- Inflation — Definition,
- A rise in the average level of prices in the economy.
- Inflation Protection — Definition,
- A protection found in some insurance policies that allows policy limits to increase with inflation.
- Life Annuity — Definition,
- An annuity that will continue to make payments until the death of the annuitant.
- 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.
- Return — Definition,
- Any increase in value or in income you earn on purchase or investment.
- Secondary Market — Definition,
- A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
- Security — Definition,
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- Stock — Definition,
- A share of the ownership of a company.
- 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.