Glossary

The contract anniversary is the annual recurring date corresponding to the contract issue date, used in deferred annuity contracts as the reference point for crediting period boundaries, free withdrawal allowance resets, surrender charge schedule progression, and other contractually defined annual events. Why it matters Most contract calculations on a deferred annuity are anchored to the contract anniversary. Knowing the anniversary date is what allows an individual to anticipate

Cost basis in an annuity context is the after-tax capital contributed to a non-qualified annuity contract, which is recovered tax-free as distributions occur and which is generally zero for an annuity held inside a tax-qualified account. Why it matters Cost basis is the tax-accounting anchor that determines what portion of an annuity distribution is return of the contract owner's own after-tax money and what portion is taxable gain. The distinction is structurally meaningful only

Cost of extra protection is the additional capital required to extend the planning horizon of a lifetime income arrangement, measured against the frictionless pool benchmark. Why it matters Self-managed drawdown and pooled arrangements respond very differently when the planning horizon is extended. In self-managed drawdown, the cost of extending the horizon scales with each additional year of certain payments. In pooled arrangements, the cost compresses, because the pool's mortali