Glossary

Planning horizon risk is the risk that an individual using solo drawdown selects a chosen planning age and outlives it, exhausting savings before death, and is the specific form longevity risk takes when income is bounded by a self-selected horizon rather than paid for life. Why it matters Solo drawdown requires choosing a planning age, and that choice has consequences the conventional withdrawal-rate conversation tends to obscure. The longer the planning age chosen, the lower the

Point-to-point crediting is an indexed annuity calculation method that measures the change in an underlying index between two specific dates — typically the start and end of a crediting period — and uses that change as the basis for the credit applied to the contract. Why it matters Point-to-point is the most common indexed-annuity crediting method, and it is the method against which other calculation methods (monthly sum, daily averaging, monthly averaging, others) are typically

A policy loan is a borrowing transaction in which the contract owner borrows against the cash value of an insurance or annuity contract while the contract remains in force, with the loan secured by the contract's cash value and the contract continuing to operate subject to specific loan-interest, repayment, and tax consequences defined by the product and applicable tax law. Why it matters Policy loans are common in cash-value life insurance contracts and less common in annuities,