- An agreement that after a set date a certain minimum dollar amount of a contract (for example a life insurance policy, annuity, or segregated fund) will be guaranteed.
guaranteed due date, promised return, growth guarantee
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.
- Bond — Definition,
- A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
- Guarantee — Definition,
- An enforceable warranty on the promise of quality of a product or formal promise by one person to take responsibility for the debts or obligations of another person if that person fails to meet them.
- Indexed Annuity — Definition,
- An annuity where investment performance is pegged to a stock index.
- Inflation-Protected Annuity — Definition,
- An annuity that guarantees a return equal to or above inflation.
- Life Annuity — Definition,
- An annuity that will continue to make payments until the death of the annuitant.
- Maturity — Definition,
- The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal.
- Present Value Interest Factor of Annuity (PVIFA) — Acronym,
- A method used to find an annuity's present value.
- Revocable Beneficiary — Definition,
- A beneficiary whose benefit can be modified without his or her consent.
- Segregated Fund — Definition,
- Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
- 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.