Defined terms for the annuity market and lifetime income landscape.
An annuity is an insurance contract under which an individual exchanges premium for a contractual right to a stream of future payments, typically continuing for the lifetime of the contract owner, with the specific structural features and costs determined by the type of arrangement chosen.
The annuity date is the contractually specified date on which a deferred annuity is scheduled to begin making income payments unless the contract owner elects otherwise, marking the transition from the accumulation phase to the distribution phase.
Annuity disclosure requirements are the regulatory rules governing what information must be provided to an individual in connection with the purchase of an annuity, including the timing, format, and content of required disclosures.
An annuity inside an Individual Retirement Account (IRA) is an annuity contract held as the investment vehicle inside an IRA, combining the IRA's tax-advantaged account structure with the annuity's lifetime income and guarantee features.
Annuity payment options are the different payout structures a carrier makes available at annuitization, each specifying how long payments continue, whether they cover one life or two, and whether any residual value is preserved for beneficiaries after the contract owner's death.
