Defined terms for the annuity market and lifetime income landscape.
A deferred income annuity (DIA) is a lifetime income arrangement in which the contract owner pays a premium to an insurer in exchange for periodic income payments that begin at a specified future date and continue for the contract owner's lifetime or another specified payout structure.
A direct writer is an insurance company that distributes its annuity products primarily through a captive sales force of employees or exclusive agents who represent only that carrier, rather than through independent intermediaries who represent multiple carriers.
The distribution phase is the period of an annuity contract during which the contract pays income to the contract owner under the elected payout structure, beginning at annuitization or at the contract's specified income commencement date and continuing until payment obligations terminate.
An enhanced death benefit rider is a rider on a deferred annuity that provides death-benefit features beyond the standard guaranteed minimum — a step-up to a high-water mark, a roll-up at a specified rate, or an earnings enhancement — in exchange for a separately disclosed rider charge.
An enhanced earnings benefit is an optional rider on a deferred annuity contract that pays the beneficiary an additional amount at the contract owner's death, calculated as a percentage of the contract's investment earnings, intended to offset the beneficiary's income-tax burden on those earnings.
