Defined terms for the annuity market and lifetime income landscape.
Cost basis in the annuity context is the amount of after-tax money an individual has invested in a non-qualified annuity contract, representing the portion of the contract's value that can be returned tax-free during distribution.
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.
Cost of income is the capital required today to produce one dollar of lifetime annual income, evaluated against a frictionless actuarial benchmark, and is the foundational analytical unit of the Longevity Standard framework.
Cost structure, in the claim-property sense, is the structural property of a claim that specifies how costs are charged and how transparent they are, with five possible values: none, explicit fee, embedded spread, crediting parameter drag, or guarantee charge.
Cost view is the Longevity Standard analytical frame that fixes a target level of lifetime annual income and compares the capital required to produce it across different arrangements.
