Defined terms for the annuity market and lifetime income landscape.
Bequest motive is the desire to preserve capital for transfer to heirs or other beneficiaries at death, which raises the value an individual places on retaining access to and control over savings during retirement.
Best interest standard is a producer conduct standard requiring that an annuity recommendation act in the individual's best interest, without placing the producer's or firm's interests ahead of the individual's, codified in the 2020 revision to the NAIC Suitability in Annuity Transactions Model.
Biological age versus chronological age is the distinction between a person's age as measured by elapsed time since birth and a person's age as estimated from biological markers of aging, with the two diverging in individuals who are aging faster or slower than the chronological-age average.
Biological aging is the progressive cellular and physiological deterioration that accompanies the passage of time in living organisms, distinct from chronological age, which simply measures elapsed time since birth.
