Term
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Definition
A series of periodic payments. In the U.S., annuities are considered to be life insurance products and only life ins. co. can issue annuities. |
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Term
The terms of an ANNUITY contract govern the rights and duties of the contracting parties - who can be party to an Annuity Contract? |
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Definition
1. The insurer that issued the contract and
2. the person or business, known as the contract owner, that owns and exercises all rights and privileges of the annuity contract. |
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Term
The contract owner pays a single premium or a series of premiums to the insurer. These are called Annuity Considerations. How is that money used? |
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Definition
The insurer pools the money it has received from a large group of contract owners, and it invests those pooled funds. |
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Term
What do the following terms refer to? Annuitant Payee Annuity Date Annuity Period |
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Definition
Annuitant is the person who lifetime is used to determine the amt. of benefits payable. The Payee is the person named to receive the periodic income pmts. The Annuity date is the date the insurer begins to pay periodic pmts. The Annuity Period is the time span between each of the payments. |
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Term
What is the difference between PAYOUT OPTIONS PROVISION AND PAYOUT OPTIONS? |
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Definition
Payout Option Provision lists and describes each of the payout options from which the contract owner may select. Payout options are choices a contract owner has as to how the insurer will distribute annuity benefits during the payout period. |
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Term
| What is the difference between the IMMEDIATE ANNUITY and a DEFERRED ANNUITY? |
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Definition
| Immediate Annuity provides periodic income pmt's that are scheduled to begin one annuity period after the date the contract is issued. Deferred Annuity is where periodic income payments are scheduled to begin more than one annuity period after the date on which the annuity was purchased. |
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