An indexed annuity pays an interest rate based on a specific market index such as the S&P 500.
Indexed annuities give buyers the opportunity to benefit when financial markets are performing well, as opposed to fixed annuities, which independently pay a set rate of interest.
However, some provisions of these contracts may limit the growth potential to only part of the market growth.
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.