Glossary

An advanced life deferred annuity, or ALDA, is a deferred income annuity structured specifically as longevity insurance, characterized by an extended deferral period — typically fifteen years or more — and payments commencing at an advanced age, most commonly 80 or 85, with the payment amount per premium dollar materially higher than for an immediately commencing annuity of the same premium. Why it matters The ALDA is the structural form most directly designed to address longevity

Adverse selection in the pooling context is the tendency for individuals with longer-than-average expected lifespans to be more likely to enter a lifetime income arrangement than those with shorter-than-average ones, producing a pool whose actual mortality experience is more favorable to longevity than the population average. Why it matters Lifetime income arrangements are voluntary purchases, and individuals tend to purchase them when they expect to benefit from them. The result

An advisory account is a brokerage or platform account in which the financial professional is compensated through an ongoing fee assessed against the account's assets — typically a percentage of assets under management — rather than through commissions on individual transactions, and in which the professional generally operates under a fiduciary standard for advice given on the account. Why it matters The advisory-account structure is the principal alternative to a commission-comp