Defined terms for the annuity market and lifetime income landscape.
An immediate annuity is any annuity contract in which income payments commence within one year of issue, with the single premium immediate annuity (SPIA) as the dominant variant in current US markets.
Immunization strategy is a portfolio construction technique that arranges the assets backing a set of liabilities so the carrier's net financial position at a target horizon is approximately preserved against interest rate changes that occur between now and that horizon.
In-force illustration is a post-issue presentation of a specific annuity contract's projected future values based on current contract conditions and stated assumptions, typically produced periodically or upon request to show how the contract is performing and expected to perform going forward.
