Glossary

An annuity is an insurance contract under which an individual exchanges premium for a contractual right to a stream of future payments, typically continuing for the lifetime of the contract owner, with the specific structural features and costs determined by the type of arrangement chosen. Why it matters Annuity is the umbrella term for a wide range of structurally different lifetime income arrangements — immediate income annuities, deferred income annuities, fixed annuities, fixe

The annuity date is the contractually specified date on which a deferred annuity is scheduled to begin making income payments unless the contract owner elects otherwise, marking the transition from the accumulation phase to the distribution phase. Why it matters The annuity date is the contract's default income commencement date. Knowing the annuity date is what allows an individual to anticipate when the contract is scheduled to convert to income, and to make any election to defe

Annuity disclosure requirements are the body of state and federal regulation, derived primarily from the NAIC Annuity Disclosure Model Regulation and supplemented for securities-registered products by SEC and FINRA rules, that specifies what must be disclosed to a prospective contract owner at the point of sale — including product features, contractual obligations, fees and charges, surrender provisions, and the right to cancel. Why it matters Annuity disclosure requirements are t