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Home Dictionary Q Qualified Annuity Contributions to a qualified annuity are made with pre-tax dollars. This means taxes are deferred until funds are withdrawn after retirement. Contributions for a non-qualifying annuity are shown in dollars after taxes, as taxes on contributions have already been paid. “Skilled” and “unskilled” IRS terms. A qualified plan has an immediate tax benefit. Accumulation Phase
September 25, 2022 The accumulation phase refers to the period of a person’s life during which he saves money for retirement. Annuitant
September 25, 2022 An annuitant is an investor or beneficiary of a pension plan who is entitled to regular pension payments or annuity investments. Annuitization
September 25, 2022 Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuity
September 25, 2022 Annuities are financial products that offer a guaranteed income stream, typically for retirees. Annuity Due
September 25, 2022 An annuity payment is an annuity that must be paid immediately at the beginning of each period. Annuity Table
September 25, 2022 An annuity table is a tool used to determine the current value of an annuity. Deferred Annuity
September 25, 2022 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. Equivalent Annual Annuity Approach (EAA)
September 25, 2022 The equivalent annual annuity is one of two methods used in capital budgeting to compare mutually exclusive projects with unequal lives. Fixed Annuity
September 25, 2022 Fixed annuities are insurance contracts that pay a guaranteed rate of interest on the account holder’s contributions. Future Value of an Annuity
September 25, 2022 The future value of an annuity is a way of calculating the monetary value of a series of payments at some point in the future. Guaranteed Death Benefit
September 25, 2022 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. Guaranteed Investment Contract (GIC)
September 25, 2022 Investment Guarantee Agreement (GIIC) is an agreement between an investor and an insurance company. Guaranteed Minimum Accumulation Benefit (GMAB)
September 25, 2022 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)
September 25, 2022 Guaranteed Minimum Income Benefit (GMIB) is an additional supplement to an annuity contract that guarantees a minimum level of payments after its annuity. Guaranteed Minimum Withdrawal Benefit (GMWB)
September 25, 2022 The Guaranteed Minimum Payout on Exit (GMWB) ensures that the policyholder receives income from all types of market activities. Hybrid Annuity
September 25, 2022 A hybrid annuity is a retirement income investment that allows investors to split their savings between fixed and variable rate products. Immediate Payment Annuity
September 25, 2022 Annuities with immediate payment are sold by insurance companies and can generate income for the owner almost immediately after purchase. Income Annuity
September 25, 2022 An income annuity is a financial product designed to exchange a lump sum for a guaranteed periodic cash flow (such as monthly or annual payments). Indexed Annuity
September 25, 2022 An indexed annuity pays an interest rate based on a specific market index such as the S&P 500. Joint Life with Last Survivor Annuity
September 25, 2022 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. Joint and Survivor Annuity
September 25, 2022 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. L Share Annuity Class
September 25, 2022 Annuities with L shares are a class of variable annuities that allow for shorter repayment periods, typically 3-4 years. Life Annuity
September 25, 2022 A life annuity is a financial product that has a predetermined amount of periodic payments until the death of the annuity recipient. Ordinary Annuity
September 25, 2022 An ordinary annuity is a series of regular payments made at the end of each period, such as monthly or quarterly. Payout
September 25, 2022 Payouts refer to expected financial returns or distributions from investments or annuities.