Glossary of Annuity Terms

Please refer to your own specific contract for the use and definitions of the terms given below. These definitions are of a general nature and may vary some with your specific contract. 

Annuity: A contract between you and an insurance company that allows your earnings to grow and compound tax-deferred. This is a powerful benefit that you can use to help you accumulate wealth for your retirement or other long-term financial goals. The word "annuity" literally means "annual payments". When you buy an annuity, the insurance company agrees to pay you an income for a specified period of time. Whether these income payments start right away, or at some future date, determines what type of annuity you have; either deferred or immediate.