Ideal Financial

Annuitant
The person to whom an annuity is payable.

Annuity
A long-term contract sold by life insurance companies that guarantees fixed or variable payments to the purchaser at regular intervals. Payments are usually scheduled to begin at a future time, such as retirement. Some annuities provide tax-deferred earnings, often as part of retirement plans.

Annuity Cash Refund
The contract for an annuity offering income for life may include a death benefit for the total premiums paid. When the annuitant dies, the annuity cash refund will be the net sum of premiums paid minus the amount received in annuity payments.

Annuity Certain
An option in an annuity contract that allows the annuity owner to select a future level of income covering a specified number of years (generally 10 years). If the annuitant dies before the end of this period, the remaining obligation is transferred to a designated beneficiary.

Annuity Joint Life
An annuity option for two or more individuals where payments cease at the death of the first annuitant.

Annuity Joint and Survivor
An annuity option that provides payments for two designated annuitants. Upon the death of the first annuitant, the surviving annuitant receives prearranged, continued payments for life, based on a percentage received by the first annuitant.

Annuity Modified Refund
In a contributory retirement plan, the annuity beneficiary of a deceased retiree receives the accumulated balance of the pension fund, which is referred to as the annuity modified refund.

Annuity Payout Option
The choice of how payments from an annuity will be received: as a fixed dollar amount, for a fixed period, or over the lifetime(s) of one or two annuitants.