Friday, July 30, 2010
Glossary
Annuitant – The person on whose life expectancy the policy is based. The
annuitant is typically the owner of the policy.
Annuity – An annuity converts a fixed sum of money into a series of periodic payments that
provide a regular source of income, usually during retirement.
Annuity Due - An annuity when the deposit date and the payment date are the same.
Beneficiary – The person designated to receive the death benefit payable on death of the
annuitant, where applicable.
Deferred Annuity – An annuity where the income payments begin at a specific date in the future.
The advantage is the owner is able to lock-in interest rates today, even though the income is not
needed until some time in the future.
Impaired Annuity – Impaired annuities are specially designed for those suffering from serious
health problems. This type of annuity will provide higher income payments than a standard
annuity provided the annuitant qualifies for an age rating.
Indexed Annuity – Indexed annuities help to combat the effects of inflation by providing
automatic income increase on an annual basis. These increases are made according to a predetermined
percentage. You can choose from an amount up to 4%.
Joint Life Annuity – In order to offer maximum security, Joint Life Annuities provide income
payments for the lifetime of a primary annuitant and that of a second annuitant (usually a
spouse). Income payments may continue to the survivor in the same amount, or in a predetermined
reduced amount.
Life Annuity – As it’s name implies, a Life Annuity provides income payments during the life of
the annuitant.
Single or Joint Life Annuity with a Guaranteed Period – Like standard Life Annuities, these
products provide income payments for the life of the annuitant. In addition, however, these
annuities will guarantee that a certain number of income payments will be made, whether the
annuitant lives or not.
Term Certain Annuity - Also known as Fixed Term Annuities, these products provide income payments only for a specific number of years. These payments are not contingent upon survival.
