Defined terms for the annuity market and lifetime income landscape.
A single premium annuity is any annuity contract funded by a single lump-sum premium payment at issue, with no provision for subsequent premium contributions — the structural alternative to a flexible-premium annuity, which accepts premium contributions over an extended accumulation period.
A single premium immediate annuity (SPIA) is a lifetime income arrangement in which the contract owner pays a one-time premium to an insurer in exchange for periodic income payments that begin within one year of purchase and continue for the contract owner's lifetime or another specified structure.
A split annuity is an arrangement in which an individual allocates capital across two annuities at the same time — typically an immediate annuity paying current income and a deferred annuity accumulating for future use — to produce defined income now while preserving growth for later.
A state guaranty association is a nonprofit entity established under each state's insurance law to provide limited coverage to contract owners of insolvent life and health insurance companies licensed in that state, funded through assessments on the solvent insurers operating in the state.
State insurance department is the state-level government agency that regulates insurance companies and insurance products — including annuities — within its state, with primary regulatory authority over licensing, solvency oversight, market conduct, and consumer protection.
