Defined terms for the annuity market and lifetime income landscape.
Daily averaging is an indexed annuity calculation method that takes the daily closing values of an underlying index across a crediting period, averages them, and uses the percentage change between the starting value and the period average as the basis for the credit applied to the contract.
Death benefit in an annuity contract is the amount payable to the named beneficiary or beneficiaries on the death of the contract owner or annuitant, with the calculation and payout terms specified in the contract and often equal to the greater of cash value or a contractual minimum.
Decision fatigue is the decline in the quality and consistency of decisions a person makes after making many decisions in sequence, as the cognitive resources needed for careful deliberation are progressively depleted.
A declared rate is the interest rate that an insurer specifies will be credited to a fixed annuity contract or to the fixed account within an indexed or variable annuity for a defined period.
Decumulation is the phase of retirement in which an individual draws income from accumulated savings, in contrast to the accumulation phase during which savings are built up through contributions and investment growth.
