Inflation-Protected Annuity

Definition

  • 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.

Synonyms
inflation rider, inflation protection rider, inflation shielded annuity

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.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage