Annuity terms explained
Annuities Explained (In Plain English)
Historically, an annuity was the term used to describe a regular flow of income to be provided by one person to another. Often, a will would require executors to purchase an annuity for a widow, or perhaps a father would settle an income on an unmarried daughter using an annuity.
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(2) The narrative shall include an explanation, in simple terms, of how index-based interest is credited in the indexed annuity; (3) The narrative shall include a brief description of the frequency with which the company can re-set the elements used to determine the index-based credits, including the participation rate, the cap, and the spread ...
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The annuity amount must be a fixed amount expressed either in the terms of a fixed dollar amount or a fixed percentage of initial fair market value of the property transferred to the trust as finally determined for federal tax purposes. By expressing the annuity in terms …
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Terms are generally from one to ten years, with six or seven years being most common. Some annuities offer single terms while others offer multiple, consecutive terms. If your annuity has multiple terms, there will usually be a window at the end of each term, typically 30 days, during which you may withdraw your money without penalty.
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