Defined terms for the annuity market and lifetime income landscape.
A free withdrawal provision is a contractual feature of a deferred annuity that allows the contract owner to withdraw a defined amount each year during the surrender period without incurring a surrender charge, typically expressed as a percentage of the account value.
A frictionless pool is a theoretical mortality pool that delivers the maximum lifetime income pooling could produce, used as the benchmark against which real lifetime income products are measured.
A friendly society is a member-owned mutual aid organization regulated under specific UK and Commonwealth statutory provisions, historically organized along occupational or geographic lines to provide sickness, death, and old-age benefits to members from pooled contributions.
Funds withheld reinsurance is a reinsurance structure in which the reinsurer assumes a share of insurance risk while the supporting assets remain on the ceding carrier's balance sheet in a designated account, credited to the reinsurer's account through the treaty.
Future value is the amount that a sum of money held today will grow to at a specified future date, given an assumed rate of return over the intervening period.
