Questions? 1.800.239.0356

X
1.800.239.0356
Back to Top
fixed annuities

Glossary Terms

Contract Anniversary

The annual anniversary of the annuity contract issue date.

Multi-Year Guarantee Annuities

A type of fixed annuity where the interest rate is guaranteed in advance for a set number of years.

Premium Bonus

The percentage added by the insurance company to premium payments made by the annuity owner. Bonuses are frequently subject to a vesting schedule.

Surrender Period

The period of time for which an annuity contract is subject to early surrender charges or penalties.

Contract Owner

The person or legal entity that applies for and buys an annuity contract. This is the party that owns the annuity and whose funds were used to purchase the policy.

Annuitant

The person whose life the annuity policy is based upon and also receives the benefits of the contract.

Yield

The total average annual interest rate percentage earned with a fixed annuity over a specified time period, including any premium bonus or interest rate enhancements.

Variable Annuity

A type of annuity contract where premium deposits can be allocated among several different investment sub-accounts. The earnings, if any, are determined by the performance of the underlying accounts. Unlike fixed annuities, funds in a variable annuity are subject to... Read more

Cost Basis

The collective total of your initial premium deposit, and any subsequent premium deposits, paid to purchase a nonqualified annuity.

Annuitization

The process of converting an annuity contract’s value into a guaranteed income stream represented by periodic payments made over a specified period of time, commonly for life.