Split-Funded Annuity

Importance: 0.57

Is a company: no

Is a proper noun: no


  • annuity ladder

Definition of Split-Funded Annuity

  1. A grouping of two separate annuities, one an immediate payout annuity and the other a deferred annuity; a portion of the principal is immediately paid back to the annuitant in the form of regular income payments, while another portion is set aside and invested for future repayment.

Related Terms and Acronyms

  • Immediate Payment Annuity Definition,
    • An annuity where payments to the annuitant start immediately after the annuity has been set up.
  • Hybrid Annuity Definition,
    • An annuity with both fixed and variable annuity elements.
  • Annuity Ladder Definition,
    • A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.
  • Cash Refund Annuity Definition,
    • An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
  • Fixed Annuity Definition,
    • An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
  • Accumulation Period (AP) Acronym, Important,
    • The period where an investor continues to put money into his or her investment(s).
  • Payout Phase Definition,
    • The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
  • 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.
  • Deferred Annuity Definition,
    • An annuity that makes payments to the annuitant at some date in future instead of immediately.
  • Life Expectancy Method Definition,
    • A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
  • 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.
  • Laddering Definition,
    • Staggering deposits into investments such as CDs in order to vary and better the rate of return.
  • Annuity Definition,
    • A financial instrument that disperses a number of payments over a set period of time.
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
  • Wraparound Annuity Definition,
    • An annuity that allows the annuitant to control how funds in the annuity are invested.
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