Annuity Agreement Contract

Duration of a certain annuity A pension that offers income for a certain number of years. Excess interest interest credited from a fixed pension contract above the minimum guaranteed by the insurance company. Persistence Bonus An improvement in policy benefits, usually in the form of additional interest credits and/or reduced fees, for policies that remain in effect for a certain period of time. The bonus can be guaranteed in the contract or not. Single Premium Annuity An annuity contract that is purchased with a single payment. All immediate cancellations and some unscategorized deferred pensions fall into this category. Minimum Guaranteed Benefit (GMIB) A pension option that ensures that the owner can annuity the contract at a certain future time, based on the higher amount of (a) the actual value of the account or (b) an amount corresponding to premiums credited with a defined interest rate or the maximum anniversary value of the account before the annuity. Fixed pension A contract that provides for a specific interest rate for the amount invested during the accumulation phase and a certain payment amount during the annuity period. The issuing company shall bear the investment risk.

Surrender value The amount available to the owner when returning a policy. During the first years of insurance, the present value of certain contracts corresponds to the value of the account less a “redemption tax”. Cash reimbursement pension An annuity statement that provides that after the death of the pension beneficiary, the deductible is paid to the designated beneficiaries before payment equal to the purchase price. Specific Period A type of reimbursement pension that ensures that if the beneficiary is dying before payments have been made for a minimum number of years, payments to the beneficiary continue until the end of the period indicated. Pension companies know that you may not be an expert in retirement contracts. Your pension insurance will likely contain several terms or concepts that you won`t be familiar with. Part C of the pension policy solves this problem. This section lists and defines the most commonly used pension concepts. To help readers, retirement companies often write words defined in bold so you know you can search for a word in Part C. When reading your policy, leave Part C open so you have a quick reference for new terms.

Effective annual return In the case of a fixed deferred pension, the annualized return is based on the daily interest rate and credit of the annuity interest. I-Share Variable Annuity Also known as royalty-based variable annuities, where an investor pays a fee to have the portfolio managed by an investment advisor. I shares do not offer a sales commission to the consultant. However, the consultant evaluates the fees for the services, including the I-Share contract concluded by the client. Reverse Annuity Mortgage An annuity reverse mortgage is an agreement in which an owner borrows for house principal and receives monthly lifetime payments from the lender. The first section of your pension insurance contains a brief description of the main details of your pension contract. As a first step, this section lists the pensioners.. . . .