Defined terms for the annuity market and lifetime income landscape.
An indexed annuity is an annuity in which credited interest is linked to the performance of a market index through parameters set by the insurer, rather than to a declared fixed rate or to direct market participation. Why it matters Indexed annuity is the umbrella term most often used loosely to cover several distinct arrangements. Naming it precisely separates the fixed indexed annuity, where the insurer controls crediting parameters and principal is not exposed to index loss, fr
Inflation adjustment is the operation of converting a nominal dollar figure into its purchasing-power equivalent at a chosen reference date, using an observed or projected inflation index, so that amounts stated at different times are analytically comparable.
