Glossary

Mortality credits are the additional income that surviving members of a lifetime income arrangement receive because other members of the arrangement have died, funded by the share of pool resources that would have been paid to those members had they lived. Why it matters Mortality credits are the structural mechanism that makes pooled lifetime income produce more income per dollar than self-managed drawdown. They are why a SPIA can pay a higher rate than a savings account holding

A multi-year guaranteed annuity (MYGA) is a deferred fixed annuity in which the insurer guarantees a fixed crediting rate for a specified multi-year guarantee period, after which the contract may be renewed at a new rate, surrendered, or annuitized into an income stream. Why it matters The MYGA is the standard insurance-industry alternative to a certificate of deposit or a short-to-intermediate-term bond holding. Its structure is an accumulation product with a contractual rate gua

The nonforfeiture benefit is the contractually guaranteed minimum value that a contract owner can recover from a deferred annuity, established under state nonforfeiture law and operating as a floor on the amount the carrier may charge through surrender charges and other cost-structure mechanisms. Why it matters The nonforfeiture benefit is the regulatory floor on what a carrier may extract from a contract through surrender charges. It is the feature that makes deferred annuities l