A tax imposed by some states on certain annuity products. The amount of tax can vary depending on the type of funds (qualified or non-qualified) used to purchase the annuity. Most insurance companies factor the tax, if any, into the... Read more
An industry coined term to describe a fixed indexed annuity that has an optional income rider attached.
The amount added by the insurance company to your bonus annuity value, usually a set percentage of the premium you put in when you buy or add money to your contract.
Non-qualified encompasses every type of funds, except those held within a tax qualified account, such as an IRA or 401k.
Qualified funds are those contained within a tax qualified account, such as an IRA or 401k.
1035 is a section of the tax code that allows for the tax free exchange of non-qualified funds from one annuity contract to another.
The collective total of the initial premium deposit, and any subsequent premium deposits, paid to purchase an annuity, excluding earned interest.
An index annuity crediting method that uses the average (usually monthly or daily) of an index’s value to determine interest credits rather than a point-to-point method that records the index value change between two specified dates.
A legal document that must be delivered, under Securities and Exchange Commission (SEC) regulations, to the prospective buyer of a variable annuity before the actual sale, providing details about the variable annuity offering.
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