Defined terms for the annuity market and lifetime income landscape.
Lifespan versus life expectancy is the distinction between the actual length of an individual life (lifespan) and the statistical average of additional years a person of a given age is expected to live (life expectancy).
Lifetime income as a QDIA is the arrangement of a defined contribution plan investment option that combines lifetime income guarantees — typically through a guaranteed lifetime withdrawal benefit — with the mechanics required to qualify as a qualified default investment alternative under ERISA.
The lifetime income disclosure requirement is the SECURE Act mandate that defined contribution plan sponsors provide participants at least annually with an illustration of the lifetime annuity income their current account balance could produce.
Liquidation of insurance companies is the state regulatory process under which the domiciliary state's insurance commissioner takes control of an insolvent carrier that cannot be rehabilitated, marshals its assets, and distributes them to claimants in a statutory order of priority.
