Defined terms for the annuity market and lifetime income landscape.
The Kelly criterion is the position-sizing rule, derived by John Kelly in 1956, that maximizes the long-run growth rate of wealth by sizing each bet or investment as a specific fraction of current wealth determined by the bet's edge and its odds.
Lapse of an annuity contract is the termination of the contract before its intended term or annuitization date, typically through the owner's decision to surrender the contract for its surrender value, though the term can also apply to contracts terminated for non-payment of premium.
