Issue Age

Issue age is the age of annuitant on the date of the annuity policy purchase; it is issued by the insurance company. Most insurance companies use the annuitant’s age as of his or her last birthday, but some companies use the annuitant’s age as of his or her nearest birthday.

Immediate Annuity

Immediate annuity is a type of annuity where the annuitant starts getting payments either right away or within a month, quarter, or usually at-most a year. The size of each payment depends on the premium, the accrued interest, and the period of time over which payments are made.

Joint Annuitants

Joint annuitants can be two individuals, typically but not necessarily husband and wife, on whose lives the annuity payment is based. In case joint annuitants are listed to receive annuity payment, the payment will continue until the death of the last annuitant.

Legal Reserve

Legal Reserve is the minimum reserve, as calculated under the state insurance code, which a company must keep to meet future claims and obligations. The amount of the legal reserve may vary from state to state.

Legal Reserve of Life Insurance Company

Legal Reserve is the minimum reserve that a life insurance company operating under state insurance laws must maintain throughout the tenure of its functioning.

Life Annuity

Life annuity is an annuity contract that provides an income for life. Generally a large number of annuities can provide an income for life if the owner/annuitant chooses to opt for it.

Lifetime Minimum Interest Rate Guarantee

It is the underlying minimum interest rate guaranteed on an annuity for the length of the annuity contract. Typically this rate is 3%. If funds are kept in an annuity after its maturity date, the annuity will continue to earn interest at the specified lifetime minimum interest rate.

Long Term Care

Long term care can be described as a continuum of maintenance, custodial, and health services for the chronically ill or disabled. These kind of services may be provided on an inpatient i.e. rehabilitation facility, nursing home, mental hospital or outpatient basis, or at home.

Long Term Care Insurance

Long term insurance care refers to the insurance contract that pays benefits in the event the insured needs long-term medical care in a facility other than a hospital. It is a variation of health insurance designed to cover the costs of long term care at home or in a nursing home. These policies are usually rather expensive and grow even more costly as the policyholder ages.

Market Risk

Market risk is nothing but the risk you take of losing all or a part of your principal when you invest in a financial instrument where the gains or losses are based upon the fluctuations in the market.