Defined terms for the annuity market and lifetime income landscape.
A joint and survivor annuity is a payout structure in which the insurer makes scheduled income payments for the lifetime of two designated annuitants — typically spouses — with payments continuing in full or at a contractually reduced level after the first annuitant's death.
A life with period certain annuity is a payment structure that pays income for the contract owner's lifetime, with a guaranteed minimum payment period during which payments continue to a named beneficiary if the contract owner dies before the period ends.
A life-only annuity is a payout structure in which the insurer makes scheduled income payments for the lifetime of the contract owner (or other designated annuitant) and the payment obligation ends at death, with no continuation to a survivor and no return of any remaining premium.
A life-only payout is an annuity payment structure in which income continues for the contract owner's lifetime and stops at the contract owner's death, with no residual value payable to beneficiaries and no guaranteed minimum payment period.
A long-term care rider is a rider on a deferred annuity that provides enhanced access to the contract's value — through accelerated withdrawals or extended benefits beyond the account value — when the contract owner meets specified long-term-care eligibility criteria, for a separate charge.
