GLOSSARY OF INSURANCE TERMSThere are 528 entries in this glossary.
The conversion of the account balance of a deferred annuity contract to income payments.
A life insurance product that pays periodic income benefits for a specific period of time or over the course of the annuitant’s lifetime. There are two basic types of annuities: deferred and immediate. Deferred annuities allow assets to grow tax-deferred over time before being converted to payments to the annuitant. Immediate annuities allow payments to begin within about a year of purchase.
|ANNUITY ACCUMULATION PHASE OR PERIOD||
The period during which the owner of a deferred annuity makes payments to build up assets.
|ANNUITY ADMINISTRATIVE CHARGES||
Covers the cost of customer services for owners of variable annuities.
In certain types of annuities, a person who receives annuity contract payments if the annuity owner or annuitant dies while payments are still due.
A contract that periodically pays income benefits for a certain period of time. (See Payout Options)
An agreement similar to an insurance policy for other insurance products such as auto insurance.
|ANNUITY CONTRACT OWNER||
The person or entity that purchases an annuity and has all rights to the contract. Usually, but not always, the annuitant (the person who receives incomes from the contract).
See Income date
|ANNUITY DEATH BENEFITS||
The guarantee that if an annuity contract owner dies before annuitization (the switchover from the savings to the payment phase) the beneficiary will receive the value of the annuity that is due.
|ANNUITY INSURANCE CHARGES||
Covers administrative and mortality and expense risk costs.
|ANNUITY INVESTMENT MANAGEMENT FEE||
The fee paid for the management of variable annuity invested assets.
The insurance company that issues the annuity.
Legal document providing detailed information about variable annuity contracts. Must be offered to each prospective buyer.
|ANNUITY PURCHASE RATE||
The cost of an annuity based on such factors as the age and gender of the contract owner.