The period during which annuity benefit payments are made.
Periodic payments for the lifetime of the annuitant only, with no further payments upon death.
Higher risks generate higher returns and lower risks generate lower returns.
Opportunities to invest in various subaccounts based on risk-return appetite.
Future premiums are waived if the life assured becomes disabled due to illness or accident.
Number of periodic annuity payments and interest rate for the general account.
Fixed Annuity, Equity-Indexed Annuity, and Variable Annuity.
Investments in various types of funds.
A claim occurring within three years from the date of risk commencement or revival.
The amount of periodic benefit will increase.
The insurance contract will discontinue, and the policy will be treated as lapsed.
To preserve principal and generate income in the form of interest.
The amount will decrease, as the account will earn less interest.
A payment made by the insurance company upon the occurrence of a specified event as per rider terms.
The time between the start of the deferred annuity contract and when payments begin.
Alterations allowed to the original policy during the policy term.
Restrictions can come from an irrevocable beneficiary or due to an assignment.
It guarantees payments throughout the annuitant’s lifetime and for a specified period, even if the annuitant dies before that period ends.
In traditional plans, insurance companies make investment decisions, while in ULIPs, policyholders choose from various funds like equity, debt, and balanced funds.
A demand for payment at the end of the policy term, which includes the sum assured plus any accumulated bonus minus outstanding premiums.
To handle continuous servicing of policies during the policy term.
The minimum guaranteed death benefit.
The period for which the insurance coverage is valid.
The period provided to the policyholder to clear outstanding premiums without extra charges.
There is no tax penalty if withdrawals are not made by age 70 ½.
Stronger customer service builds trust and faith in the insurer.
An insurance plan where the sum assured is paid only if the life assured remains alive throughout the policy term; no death claim is paid if death occurs during the term.
First heart attack, stroke, kidney failure, etc.
Rights include naming and changing the beneficiary, surrendering or canceling the policy, transferring ownership, changing policy provisions, pledging the policy for loans, and deciding how beneficiaries receive proceeds.
The person applying for and paying for the insurance policy, who becomes the policyholder upon acceptance.
The process of selecting the person(s) to whom the claim should be paid after the death of the life assured.
It allows the policyholder to keep their policy alive at a revised Sum Assured without further premium payments after defaulting.
An annuity purchased by a single lump-sum premium payment.
Traditional IRAs and Roth IRAs.
Options include a lump sum payment or maintaining the payout with the insurance company to collect interest.
Outstanding loans, interest, and any outstanding premiums.
Premiums that qualify for tax deduction have a maximum limit set by authorities.
The person who transfers their title in the insurance policy.
The assignee becomes the total owner of the policy.
The contract owners.
A periodic payment for the lifetime of the annuitant.
The individual whose life is being covered by the policy.
To ensure the plan continues even if the parents die.
A proposed life assured has a significantly lower-than-average likelihood of loss and is charged lower-than-standard premium rates.
Absolute assignment and collateral assignment.
Financial, medical, and non-medical underwriting.
Certain risks, like death due to war or riots, may not be covered.
The insurance company pays the sum assured to the nominee if the life assured dies during the policy term.
Annuities that meet specific IRS requirements for tax benefits.
Annuities that do not meet IRS requirements for tax benefits.
Investors can transfer money among sub-accounts, change allocation percentages, and change sub-accounts for future premiums.
Ownership of the policy reverts to the assignor upon the occurrence of a specified condition.
If the annuitant’s age or gender is misstated, calculations will be done as per the correct age or gender.
They allow the contract owner to choose from various annuity options for payment during the payout period.
It allows the contract owner to surrender the annuity for its cash surrender value during the accumulation period.
Immediate and Deferred Annuities.
An annuity where periodic payments begin one annuity period after purchase.
Principal Guarantees, Interest Rate Guarantees, and Payout Guarantees.
The principal (sum of premiums paid) is secure regardless of the underlying investment performance.
A plan that covers the individual throughout their entire life, paying the sum assured and bonuses upon death.
An annuity that provides payments based on the lives of two or more annuitants, continuing as long as the last annuitant survives.
Its return is linked to an equity index, providing potentially greater returns but with more volatility.
To act on behalf of a minor nominee until they become a major.
An annuity where premiums are paid at fixed amounts at defined intervals.
Policyholders can choose to receive the maturity benefit in periodic installments over a specified period instead of a lump sum.
Riders allow policyholders to obtain additional insurance coverage beyond the basic policy at an additional cost.
An annuity where the accumulated value and periodic benefits fluctuate based on investment performance.
Credit card, direct debit, ECS, and standing instruction.
An annuity purchased to accumulate or distribute funds from a tax-qualified plan, exempt from current income taxation during the accumulation period.
The amount will decrease, as the same amount of money will be spread over a larger number of payments.
It allows the contract holder to purchase an annuity from any available pension plan provider in the market.
Life only Annuities, Joint & Survivor Annuities, Life income with period certain Annuities, Life Income with refund Annuities.
Defined payments made to the policyholder at specific intervals during the policy term.
Short-term and long-term government and corporate bonds.
The insurance company may not contest claims after a specific period, except in cases of fraud.
A proposed life assured has a greater-than-average possibility of loss but is still insurable, charged a higher-than-standard premium.
Payments will continue to a contingent payee for the selected period.
Paid up value = [(number of premiums paid ÷ total premiums payable) × sum insured] + bonus.
The minimum amount the insurance company pays when a policy is surrendered before maturity.
The simplest form of insurance that pays the sum assured to the nominee if the life assured dies during the policy term.
They are not entitled to anything; there is no maturity benefit.
A variant of term insurance that returns part or all of the premium if the life assured survives the policy term.
A CI rider pays a specified amount upon diagnosis of a critical illness, which can be used for medical purposes.
It allows the contract owner to withdraw part of the accumulated value during the accumulation period.
They may lose the principal amount.
Policies that pay survival benefits at regular intervals during the policy term, with the remaining amount paid at maturity.
A plan that allows conversion from one type to another, such as from term insurance to endowment or whole life plans.
Penalties for early withdrawal or failing to make withdrawals within a specified time frame.
The period during which annuity benefit payments are made.
Investing in different categories of financial instruments to minimize risk.
In Roth IRAs, the tax break is granted upon withdrawal post-retirement, rather than when paying premiums.
A series of payments of fixed amounts made to the annuitant throughout the payout period.
Contact details, name, date of birth, gender, occupation, address, signature, ownership, and nomination changes.
Change of premium payment mode, increase/decrease in sum assured, addition/deletion of riders, and surrender of the policy.
The underwriter may ask for a medical examination.
Conditional and Absolute assignment.
To accumulate and manage funds for financial obligations post-retirement.
The number of deaths in a given population at a particular unit of time.
ULIPs are insurance plans where the investment risks are borne by the policyholders, suitable for those willing to take investment risks for higher returns.
It ensures a minimum accumulated value at maturity and a minimum annuity benefit payment.
Plans that offer insurance coverage for two persons under one policy, ideal for married couples or business partners.
A retirement plan that is generally not taxed under US law, provided certain conditions are met.
Between 1% to 3%.
The period between the purchase of the contract and the beginning of benefit payments.
The discontinuation of a policy and its benefits due to non-payment of premiums.
It allows a policyholder to revive a lapsed policy after paying all outstanding premiums.
The person or legal entity entitled to receive the death benefit if the annuitant dies.
An annuity purchased by an individual who is the owner of the contract.
A death claim is paid to the nominee.
A retirement savings plan where individuals can deposit part of their taxable compensation in a tax-deferred savings plan.
They carry out a detailed investigation and may ask for additional documents.
A proposed life assured has a likelihood of loss that is not significantly greater than average, and is issued at standard premium rates.
No, there is no defined maximum limit.
It provides the customer the first chance of experiencing quality service and allows for incorporating changes in the insured's life.
An agreement where the insurance company makes payments at regular intervals in exchange for premiums.
To make provision for expenses incurred in administering the policies.
The person or entity that purchases the annuity.
The person who receives the benefit from an insurance policy or a trust.
An annuity where the timing and amount of premium payments are not specified but must fall within a minimum and maximum.
An annuity that pays a minimum interest rate on premium payments.
The transfer of title, rights, and interest in an insurance policy to another party.
Yes, heirs can withdraw money tax-free over their lifetime.
The consideration paid by the policyholder to the insurance company for the benefits offered.
Restrictions on sum assured, maximum entry age, maximum policy term, maximum age at maturity, certain types of insurance plans, and class/categories of life assured based on social and economic background.
Participating policies share profits with policyholders, while non-participating policies do not.
Standard risks, Preferred risks, Substandard risks, and Declined risks.
Individuals as well as legal entities like trusts or corporations.
An annuity where periodic payments begin more than one annuity period after purchase.
Typically higher than 70½ years.
ULIPs offer the benefits of both life insurance and investment.
Maturity claims, death claims, and rider benefits.
The right to receive the policy money but not any rights to the whole or part of the claim.
A proposed life assured has a likelihood of loss that is too great for the insurer to cover.
It determines the amount of life insurance an individual can get based on their insurable interest limit.
It is the sum assured minus the survival benefits received during the policy term.
Only the fund value is payable on maturity.
Individual Annuities are purchased by individuals, while Group Annuities are purchased by groups or organizations.
To determine the health status of the life assured for life coverage eligibility.
Earnings are typically tax-free if the contract is maintained for at least five years and the owner is age 59 ½ or older.
Until money is withdrawn from the account as annuities.
The fund value or the fund value plus sum assured at the end of the policy term.
Restrictions may apply to female lives or lives of minors.
An ADB rider provides an additional death claim if the life assured dies due to an accident.
The insurance company that promises to make annuity payments according to the contract terms.
Yes, if the policy conditions allow for it.
It allows contract owners a defined period to examine the policy and decide to retain or return it.
Once bought, the annuity options cannot be altered or switched to another provider.
A specified minimum return on the principal, regardless of underlying investment performance.
Higher risk and higher return potential.
The period between purchase and the beginning of benefit payments when the corpus is created.
A sponsoring financial institution like an insurance company, bank, or investment company.
Fixed and Variable Annuities.
No, it is not deductible from the contract owner's current taxable income.
Payments that vary throughout the payout period according to the performance of the subaccounts.
They may be subjected to a tax penalty.
The amount depends on the accumulated value in the general account.
Use it to buy an annuity using the open market option.
The incidence of sickness and accidents by age among a given group.
The process of investing in money markets, bonds, and stocks in defined proportions.
Single-Premium, Fixed-Premium, and Flexible-Premium Annuities.
To create a fund from which claims are paid.
The majority of premiums.
The period when annuity or benefit payments are given out.
The person or legal entity who receives the annuity payments.
The option for policyholders to enjoy benefits even if there is a default in premium payment.
The person or institution to which the policy is transferred, gaining ownership of the policy.
An annuity that is not part of tax-qualified plans.
It grants the contract owner of a non-qualified annuity the right to transfer ownership of the contract.
If suicide occurs within a specific period, only premiums plus interest are returned; after that, full payout is made.
The person receiving the annuity as per the agreement.
The higher of the sum assured or the market value of the investment (fund value) is paid.
Factors include the individual's income and net worth.
Premiums may be deductible from the contract owner's current taxable income.
It does not require a medical examination; a detailed proposal form is used instead.
Riders can enhance the quality and scope of coverage at a nominal cost.
Interest along with the premium if the life assured survives until maturity.
Qualified and Non-Qualified Annuities.
Limited tax advantages; premiums are not tax-deductible but earnings accrue on a tax-deferred basis.
It allows a lapsed policy to be reinstated within a specific period by paying due premiums and penalties.
It provides payments throughout the annuitant's lifetime, with the remaining purchase price refunded if the annuitant dies before the total purchase price is paid out.
Changes in customer details, policy-related changes, and requests for duplicate policy documents.
At least 90% of the premium amount.
Investments whose performance is tracked based on indexes like NASDAQ 100.
Fund switch, premium redirection, top-up premium, and partial withdrawals.
An annuity purchased by an employer or group sponsor for the benefit of group members.
It stipulates that the insurer cannot contest the contract once it becomes effective.
It allows the contract owner to nominate a beneficiary to receive survivor benefits if the owner dies before payments begin.
