A hybrid annuity is a retirement income investment that allows investors to split their savings between fixed and variable rate products.
They are designed to provide both growth and income by creating a portfolio of both conservative and riskier assets, however most annuities already offer these benefits.
Like other annuities, the goal is to create a stable income stream during retirement and can be paid immediately or deferred with fixed or flexible contributions.
A hybrid annuity consists of a variable component that allows investment capital to be allocated to a growth mutual fund sub-account and a fixed component that guarantees a set amount of payments after retirement.
Critics of hybrid annuities argue that they are overly complex, expensive, and over-designed, and that most annuities provide some kind of growth and income component.
A deferred annuity is an insurance contract that promises to pay the buyer a regular income or a lump sum of money some day in the future. In contrast, immediate annuities start paying immediately.
Guaranteed death benefit is a benefit condition that guarantees that the recipient of the benefit will receive a death benefit if the recipient of the annuity dies before the annuity starts paying benefits.
The Guaranteed Minimum Savings Allowance (GMAB) is an optional element of an annuity that guarantees the payment of a minimum amount of an annuity after a holding period: accumulation or other specified period.
Guaranteed Minimum Income Benefit (GMIB) is an additional supplement to an annuity contract that guarantees a minimum level of payments after its annuity.
Living together with a last-earner annuity is an insurance product for a couple that provides for regular payments as long as one of the spouses is alive.
A survivorship annuity and joint annuity is an insurance product designed for married couples that continues to make regular payments as long as one of the spouses is alive.