Glossary

Annual reset is the indexed annuity convention under which the index starting value is reset each year, any positive credit from the prior year is locked into the contract value, and the next year's crediting calculation begins from the new starting value. Why it matters Annual reset is the periodicity convention that governs how indexed annuity credits accumulate across multiple years and how the contract's credited value protects against subsequent index declines. Naming the con

Annuitization is the conversion of a sum of capital into a stream of periodic income payments, typically continuing for the lifetime of the contract owner, in exchange for surrendering the right to access the capital as a lump sum. Why it matters Annuitization is the structural transaction at the core of every traditional lifetime income arrangement. It is the moment at which capital becomes income, and at which liquidity is exchanged for longevity protection. Naming the transacti

The annuitization rate is the factor a carrier applies to a deferred annuity contract's account value at the time of annuitization, expressed as an annual income amount per dollar of account value, that determines the lifetime income the contract will pay under the selected payout option. Why it matters The annuitization rate is the operational expression of what an accumulated annuity contract will produce as income at the moment the contract owner converts account value to a lif