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| The guarantee that if you should die before you convert your variable annuity into regular income payments (annuitize your
contract), your annuity's beneficiaries will receive the higher of the account value or a different amount specified in the deferred annuity (such as the
amount you contributed to the annuity, less withdrawals). In many variable annuities, the death benefit can increase over time. |
| The date on which a company or fund announce the amount and payment date of the next quarterly dividend. |
| Level Premium Term insurance with death benefits that decrease each policy anniversary. The death benefit may decrease
according to a schedule that fits a declining need, such as a loan balance. |
| A type of personal retirement account that provides tax-deferred growth potential for long-term goals, such as retirement.
When you are ready to receive income payments, the deferred annuity provides many choices, including guaranteed income for life. There are two types of
deferred annuities: fixed and variable. |
| Arrangements by which compensation to employees for past or current services is postponed until some future date. |
| A sales charge deducted from an investment for exiting early, or before the sales charge ceases to exist. Mutual fund class B
and C shares often carry a deferred sales charge. Also called back end load, CDSC or contingent deferred sales charge. |
| A retirement plan that agrees to pay a specified amount to each retiree after so many years of service, or time at the
company. Contributions grow tax-deferred and can by made by both employers and employees, or only the employer. |
| A retirement plan that whose benefits are dependent upon the investment performance and the total contributions made by the
employer and employee. Contributed funds grow tax-deferred, and a discretionary match by the employer is sometimes offered. Employees are given investment
options, and they bear the risk of how those selections perform. Popular defined contribution plans include 401(k), 403(b), and 457. |
| Decline in the price of goods and services. Opposite of inflation. |
| A form of term insurance, not really involving a "deposit," in which the first-year premium is larger than subsequent
premiums. Typically, a partial endowment is paid at the end of the term period. In many cases the partial endowment can be applied toward the purchase of
a new term policy, or, perhaps, a whole life policy. |
| The named beneficiary, to whom death proceeds will be paid directly upon the insured's death. |
| A distribution from a qualified plan or IRA account sent directly to the account custodian. Direct rollovers avoid early
withdrawal penalties imposed by the Internal Revenue Service. |
| A form of insurance coverage that provides a portion of income lost as the result of a total or partial disability caused by
either an accident or an illness. |
| A reimbursement plan designed to cover business expenses during the total or partial disability of a professional or business
person. |
| A financial strategy to help reduce risk by spreading your assets across different asset classes, such as stocks and bonds,
or across different types of securities within the same asset class. For example, you can diversify your stock holdings into stocks of different
industries. |
| A refund of part of the annual premium, which is left over after the company has set aside the necessary reserve. |
| A financial strategy of making investments at regular intervals with a fixed dollar amount. A key benefit is that over time,
your average per unit cost should be lower than either the market high or the average price. Dollar cost averaging does not guarantee a profit or protect
against a loss. It involves continuous investment in securities regardless of fluctuating prices. You should consider your financial ability to continue
purchases through periods of low price levels. |
| An insurance company is a domestic company in the state in which it is incorporated. |
| A policy provision usually associated with death, which doubles payment of a designated benefit when certain kinds of
accidents occur. |
| The DJIA is a widely followed index that is used as a barometer of stock market performance. This stock index is based upon
30 major companies, or components in diversified industries, such as banking, consumer staples, retail, healthcare, and technology. |
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