Defined terms for the annuity market and lifetime income landscape.
An enhanced death benefit rider is a rider on a deferred annuity that provides death-benefit features beyond the standard guaranteed minimum — a step-up to a high-water mark, a roll-up at a specified rate, or an earnings enhancement — in exchange for a separately disclosed rider charge.
An enhanced earnings benefit is an optional rider on a deferred annuity contract that pays the beneficiary an additional amount at the contract owner's death, calculated as a percentage of the contract's investment earnings, intended to offset the beneficiary's income-tax burden on those earnings.
An ensemble average is the average of an outcome's values across many parallel agents or systems at a single moment in time, treated as a measure of the cross-section of the population at that moment.
An ensemble-average return is the arithmetic mean per-period return computed across many parallel investment paths at a single moment, equivalent to the expected return under standard portfolio theory.
