Results tagged “Annuity”

Legal document providing detailed information about variable annuity contracts. Must be offered to each prospective buyer.

The fee paid for the management of variable annuity invested assets.

Covers administrative and mortality and expense risk costs.

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.

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).

An agreement similar to an insurance policy for other insurance products such as auto insurance.

In certain types of annuities, a person who receives annuity contract payments if the annuity owner or annuitant dies while payments are still due.

Covers the cost of customer services for owners of variable annuities.

The period during which the owner of a deferred annuity makes payments to build up assets.

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.