A private annuity is an arrangement in which the client transfers property to an individual or entity in return for a promise of fixed periodic payments for the rest of the client’s life. In private annuities, the person or entity assuming the payment obligation is not in the business of selling annuities.
A distribution method that allows a variable annuity contract owner to periodically receive a specified amount as a partial withdrawal from the annuity contract value prior to the annuity starting date. Unlike lifetime annuity payments, systematic withdrawals continue until the contract value is exhausted. Systematic withdrawals are taxable to the extent they represent investment gain … Read more
X-share variable annuity contracts credit an additional amount or bonus to the contract value. The amount is calculated as a percentage of purchase payments added to the contract at, or subsequent to, contract issue. Contract charges may be higher in X-share products.
In life reinsurance, non-routine expenses of the Ceding Company for claims investigation, legal defense or rescission actions. The reinsurer typically agrees to pay such expenses as distinct from punitive, exemplary or other non contractual expenses which it does not agree to pay.
A flexible premium policy that combines protection against premature death with a type of savings vehicle, known as a cash value account, that typically earns a money market rate of interest. Death benefits can be changed during the life of the policy within limits, generally subject to a medical examination. Once funds accumulate in the … Read more
A form of Annuity contract that gives purchasers the freedom to choose among certain optional features in their contract.
A form of life insurance that covers the insured person for a certain period of time, the “term” that is specified in the policy. It pays a benefit to a designated beneficiary only when the insured dies within that specified period which can be one, five, 10 or even 20 Years. Term life policies are … Read more
An form of Annuity that pays out over a fixed period rather than when the Annuitant dies.
A charge for withdrawals from an Annuity contract before a designated surrender charge period, usually from five to seven years.
Legal agreement to pay a designated person, usually someone who has been injured, a specified sum of money in periodic payments, usually for his or her lifetime, instead of in a single lump sum payment. See Annuity