Glossary

A variable annuity is an insurance contract under which the contract owner allocates premium to subaccounts holding investment options whose values fluctuate with market performance, with optional living-benefit and death-benefit riders providing contractually specified guarantees in exchange for explicit charges. Why it matters The variable annuity is the canonical hybrid arrangement in the lifetime income product universe. Without riders, it is fundamentally an investment accoun

A volatility-controlled index is a constructed index, typically built by a carrier in partnership with an index provider, that targets a specified level of volatility by dynamically reallocating between an equity component and a cash or fixed-income component as measured volatility rises and falls. Why it matters Volatility-controlled indexes are the most common alternative to reference indexes such as the S&P 500 in the indexed-annuity strategies offered today. Naming volatility-