Defined terms for the annuity market and lifetime income landscape.
Annuitization rate is the specific conversion factor a carrier applies at the moment of annuitization to translate an accumulated account balance into a stream of income payments, reflecting the carrier's mortality assumption, investment yield expectation, and load structure on that date.
An annuity is an insurance contract under which an individual exchanges premium for a contractual right to a stream of future payments, typically continuing for the lifetime of the contract owner, with the specific structural features and costs determined by the type of arrangement chosen.
The annuity date is the contractually specified date on which a deferred annuity is scheduled to begin making income payments unless the contract owner elects otherwise, marking the transition from the accumulation phase to the distribution phase.
