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.
