Annuities


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Annuities

 

a form of state loan by which the creditor periodically receives a certain income (rente), established on the basis of a gradual liquidation of the capital sum and interest on the debt. There are fixed-term and life annuities. In the case of the former, the payment of income is limited in time (usually the period is quite long) and may be transferred to another individual. In the case of lifetime annuities, income may be received only by the immediate creditor, and the payment of rente ceases with the death of the holder. The price of annuities derives from the market level of loan interest rates. The size of the annual payment on lifetime annuities is determined in accordance with the age of the creditor and statistical data on the mortality of the population. In Britain and France annuities were issued in the early 19th century in order to speed up the liquidation of termless loans, the latter being exchanged for fixed-term or lifetime loans. In non-European countries annuities spread in the 17th and 18th centuries: in the USA they were issued during the consolidation of the state debt, which arose during the War for Independence (1775–83).

References in periodicals archive ?
8%, encompassing the combined mortality risk, expense risk and administrative charges for the vast majority of variable annuities.
The Retirement Income Specialists will add to the success of the current wholesaling team who will continue to provide bank representatives with products, marketing support and sales training for the entire family of New York Life annuities distributed through banks.
Variable annuities are mutual funds with some wrappers on them, and are not immune to the examination that mutual funds have been experiencing recently, said Stephan Christiansen, director of research at Conning Research & Consulting.
No two investors are alike, and HD Lifetime Five, coupled with our other leading optional living benefits, provides investors approaching or in The Retirement Red Zone(R)Cothe five years before and after retirementCowith a full array of products designed to help solve their diverse retirement planning needs," says Jac Herschler, vice president of Marketing for Prudential Annuities.
mainly focuses on the sale of variable annuities "as these wealth accumulation products are a good strategic fit with the portfolio of products and services offered to clients through" Merrill Lynch's financial advisers, according to A.
Please see current product and underlying investment portfolio prospectuses for more complete information about Jefferson National's variable annuities and the underlying investment portfolios.
John Fenton, a principal in the life insurance practice at Tillinghast Towers-Perrin, said that fixed annuities are likely to "hold their own" in a continuing low-interest-rate environment as interest shifts to variable annuities.
MetLife Investors offers an array of retirement income products and options with an emphasis on product flexibility," said Paul Sylvester, National Sales Manager of Annuities and Long-Term Care, MetLife Investors.
That's because the people who buy non-qualified variable annuities are likely to still have money available for them, and because insurers would likely sell more variable annuities within the new accounts, according to Noel Abkemeier, consulting actuary and principal at the Virginia office of Milliman & Robertson.
This rate is based on rates established and published by the Committee on Gift Annuities, 2401 Cedar Springs, Dallas, Tex.
NEW YORK -- Corporate Insight, the leader in providing competitive intelligence, analysis, and consulting services to the financial services industry, today announced the launch of Annuity Monitor, an ongoing look into the marketing, selling, and servicing of annuities by the largest firms in the industry.