Page 147 - The Informed Fed--Hearn (edited 10.29.20)

Premium: The amount you pay to buy an annuity or any other insurance
product. With a single premium annuity you pay just once, but with other
types you pay an initial premium and then make additional premium
payments.

Principal: The amount of money you use to purchase an annuity, bond,
mutual fund, stock or other investment. The principal is the base on
which your earnings accumulate.

Proprietary Portfolios: The investment portfolios offered within a
variable annuity that are run by the insurance company’s investment
managers. The annuity may also offer portfolios run by managers
working for another financial institution, such as a mutual fund.

Qualified annuity: An annuity contract you buy with pretax dollars as
part of an employer-sponsored qualified retirement plan.

Rollover: An IRA or qualified retirement plan that you move from one
trustee to another is known as a rollover. You can roll over any qualified
plan, including a qualified annuity, into an IRA, preserving its tax-
deferred status.

Separate account: The account established by the insurance company
to hold the money you contribute to your variable annuity. It is separate
from the company’s general account, where fixed annuity premiums are
deposited. Money in the separate account is not avail-able to the
company’s creditors.

Single premium annuity: This type of annuity contract is purchased
with a one-time payment. All immediate annuities and some deferred,
nonqualified annuities are in this category.

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