Annuity Terminology

Prior to this income phase the insurance company credits interest that will never be less than the rate guaranteed by the annuity contract.

Annuity terminology. An annuity unit value may also refer to a reinvestment of the trusts income directly into the trust fund rather than as cash to the investor. Under the terms of a fixed annuity the insurance company agrees to credit a guaranteed minimum interest rate to the annuity. A type of annuity where a period of time elapses between the time it is purchased and funded and the time that it begins to make annuity payments to the payee.

The simplest form of an annuity a fixed annuity guarantees a stream of fixed payments over a certain period of time andor a persons lifetime. There is no market risk to your premium. The Terminology of Time Value Abbreviations Timelines Calculating the Future Value Calculating the Future Value cont.

An annuity is a financial product that provides certain cash flows Cash Flow Cash Flow CF is the increase or decrease in the amount of money a business institution or individual has. An annuity unit value a valued measurement of an investment that accumulates during a contractual period continues to grow with each financial contribution into an individual annuity account. Financial lingo can seem like a foreign language and annuities have their own unique product-specific vocabulary.

Fixed Indexed or Index-Linked Annuities. What you use to pursue your specific financial goal. Annuity A periodic income payable for the lifetime of one or more persons or for a specified period.

An annuity contract that you generally buy with a lump sum and from which you begin receiving income within a short period always within 12 months. A type of deferred annuity that pays a fixed rate of interest. Glossary of Key Annuity Terms Annuitant.

A contract in which an insurance company agrees to pay an income for life or for a specified number of years. Purchase payments Money paid into a contract. Annuity Commencement Date The date income payments begin also known as the annuity.