Page 144 - The Informed Fed--Hearn (edited 10.29.20)
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Annuity Glossary of Terms
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Accumulation units: The shares of ownership you have in a variable
annuity investment portfolio during the period you are saving for
retirement. As you pay additional premiums, you buy additional units.
Annuitant: The person who receives income from an annuity. The
annuitant’s life expectancy is used to figure the initial income amount the
annuity pays.
Annuitize: To convert the accumulated value of an annuity into a stream
of income, either for one or more lifetimes or a specific period of time.
Annuity contract: A legal agreement between you and an insurance
company, sometimes called an annuity company.
Annuity units: The number of units you own in a variable annuity
investment portfolio during the period you are taking income. The
number of your annuity units is fixed and does not change.
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