Terms with Category Annuities
- Accumulation Period (AP) — Acronym, Important,
- The period where an investor continues to put money into his or her investment(s).
- Annuitant — Definition,
- An individual who owns or is the recipient of an annuity.
- Annuitization — Definition,
- The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
- Annuitization Options — Definition,
- The different income dispersal options available when annuitizing a retirement plan or annuity, such as the timeframe and list of beneficiaries.
- 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.
- Annuity Certain — Definition,
- A type of annuity that makes payments to the annuitant for a set term; payments stop when the agreed upon term ends, even if the annuitant is still alive after the term ends.
- Annuity Consideration — Definition,
- The payment(s) made by an individual in order to accumulate value in an annuity.
- Annuity Contract — Definition,
- A contract that outlines each party's responsibilities as they relate to an annuity.
- Annuity Factor Method — Definition,
- A way of determining the maximum amount an annuitant can withdraw from an annuity before penalties are applied.
- Annuity in Advance — Definition,
- When payments are made at the start of a period as opposed to the end.
- Annuity in Arrears — Definition,
- When payments are made at the end of a period as opposed to the start.
- 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.
- Annuity Table — Definition,
- A table that can be used to find the future value of an annuity.
- Beneficiary — Definition,
- An individual or entity chosen to receive benefits from a will, trust, deed or insurance policy.
- Cash Refund Annuity — Definition,
- An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
- Cash Surrender Value (CSV) — Acronym, Important,
- The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
- Certified Annuity Specialist (CAS) — Acronym, Important,
- A professional who is certified to provide investment advice about annuities to clients.
- Charitable Gift Annuity (CGA) — Acronym, Canada, Very Important,
- A method to facilitate charitable giving whereby an individual transfers assets to a charity in exchange for a tax deduction and lifetime retirement income payments from the charity.
➥ A form of planned giving. - Commissioners' Reserve Valuation Method — Definition,
- A method used to determine the minimum statutory reserves for annuities and insurance products.
- Commutation — Definition,
- An option given to the beneficiaries of annuities and life insurance policies that allows them to modify the frequency and size of benefit payments.
- Death Benefit (DB) — Acronym, Very Important,
- A payment or series of payments made to the beneficiaries of a life insurance policy.
➥ An amount paid to a beneficiary in a life linsurance policy. - Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Estate Planning — Definition,
- The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
- Fixed Annuity — Definition,
- An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
- Fixed Premium — Definition,
- Insurance or annuity premiums that stay level for a specific period of time.
- Future Value of an Annuity (FVA) — Acronym,
- The value of an annuity at some future date.
- Guarantee Period — Definition,
- A time period where income payments from an annuity are guaranteed.
- Hybrid Annuity — Definition,
- An annuity with both fixed and variable annuity elements.
- Immediate Payment Annuity — Definition,
- An annuity where payments to the annuitant start immediately after the annuity has been set up.
- Indexed Annuity — Definition,
- An annuity where investment performance is pegged to a stock index.
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Accumulation Period -
Annuitant
Annuitant
