| term | description |
| A-SHARE VARIABLE ANNUITY | A form of variable annuity contract where the contract holder pays sales charges up front rather than eventually having to pay a surrender charge. |
| ANNUAL ANNUITY CONTRACT FEE | Covers the cost of administering an annuity contract. |
| ANNUITY | A life insurance product that pays periodic income benefits for a specific period of time or over the course of the annuitants lifetime. There are two basic types of annuities: deferred and immediate. Deferred annuities allow assets to grow tax-deferred over time before being converted to payments to the annuitant. Immediate annuities allow payments to begin within about a year of purchase. |
| ANNUITY ACCUMULATION PHASE OR PERIOD | The period during which the owner of a deferred annuity makes payments to build up assets. |
| ANNUITY ADMINISTRATIVE CHARGES | Covers the cost of customer services for owners of variable annuities. |
| ANNUITY BENEFICIARY | In certain types of annuities, a person who receives annuity contract payments if the annuity owner or annuitant dies while payments are still due. |
| ANNUITY CONTRACT | An agreement similar to an insurance policy for other insurance products such as auto insurance. |
| ANNUITY CONTRACT OWNER | The person or entity that purchases an annuity and has all rights to the contract. Usually, but not always, the annuitant (the person who receives incomes from the contract). |
| ANNUITY DEATH BENEFITS | The guarantee that if an annuity contract owner dies before annuitization (the switchover from the savings to the payment phase) the beneficiary will receive the value of the annuity that is due. |
| ANNUITY INSURANCE CHARGES | Covers administrative and mortality and expense risk costs. |
| ANNUITY INVESTMENT MANAGEMENT FEE | The fee paid for the management of variable annuity invested assets. |
| ANNUITY ISSUER | The insurance company that issues the annuity. |
| ANNUITY PROSPECTUS | Legal document providing detailed information about variable annuity contracts. Must be offered to each prospective buyer. |
| ANNUITY PURCHASE RATE | The cost of an annuity based on such factors as the age and gender of the contract owner. |
| B-SHARE VARIABLE ANNUITY | A form of variable annuity contract with no initial sales charge but if the contract is cancelled the holder pays deferred sales charges (usually from 5 to 7 percent the first year, declining to zero after from 5 to 7 years). The most common form of annuity contract. |
| DEFERRED ANNUITY | An annuity contract, also referred to as an investment annuity, that is purchased either with a single tax-deferred premium or with periodic tax-deferred premiums over time. Payments begin at a predetermined point in time, such as retirement. Money contributed to such an annuity is intended primarily to grow tax-deferred for future use. |
| EQUITY INDEXED ANNUITY | Nontraditional fixed annuity. The specified rate of interest guarantees a fixed minimum rate of interest like traditional fixed annuities. At the same time, additional interest may be credited to policy values based upon positive changes, if any, in an established index such as the S&P 500. The amount of additional interest depends upon the particular design of the policy. They are sold by licensed insurance agents and regulated by state insurance departments. |
| FIXED ANNUITY | An annuity that guarantees a specific rate of return. In the case of a deferred annuity, a minimum rate of interest is guaranteed during the savings phase. During the payment phase, a fixed amount of income, paid on a regular schedule, is guaranteed. |
| IMMEDIATE ANNUITY | A product purchased with a lump sum, usually at the time retirement begins or afterwards. Payments begin within about a year. Immediate annuities can be either fixed or variable. |
| JOINT AND SURVIVOR ANNUITY | An annuity with two annuitants, usually spouses. Payments continue until the death of the longest living of the two. |
| PURE LIFE ANNUITY | A form of annuity that ends payments when the annuitant dies. Payments may be fixed or variable. |
| SINGLE PREMIUM ANNUITY | An annuity that is paid in full upon purchase. |
| TERM CERTAIN ANNUITY | An form of annuity that pays out over a fixed period rather than when the annuitant dies. |
| VARIABLE ANNUITY | An annuity whose contract value or income payments vary according to the performance of the stocks, bonds and other investments selected by the contract owner. |