Accelerated Death Benefits |
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Sometimes referred to as "living benefits", Accelerated Death Benefits are payments given to life insurance policy holders with a catastrophic or terminal illness in advance of their death. While provisions can vary depending on the life insurance policy, payments are often up to 80% of the amount that would be paid after death, and payments can be received up to two years before the policy holder's death is predicted. |
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The total value of an annuity including the initial investment and the interest earned. |
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An individual who receives annuity benefits, usually the holder of a life annuity. |
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The process of converting an annuity investment into an annuity payment or payments. |
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A tax-deferred financial product consisting of an individual's investment which can be structured to return a series of payments with interest at a later point in time. Typically used to ensure a steady income for retirees, an annuity contract can provide annuity payments for any number of years after annuitization or for the entire life of an individual. |
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Guaranteed periodic payments to the owner of an annuity. |
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A written agreement between an insurance company and the annuity holder stipulating the terms of the annuity. |
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A contract which allows the annuitant to delay receiving annuity payments, usually in order to receive more favorable rates. |
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The party that issues an annuity, i.e. an insurance company. |
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The party or parties who hold an annuity and are legally entitled to withdrawal money, designate a new beneficiary, or change the terms of the contract. |
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A period of time, stated in an annuity contract, during which the annuity owner can receive payments. |
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The date set in an annuity contract for annuity payments to begin. |
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The legal transfer of one party's interest in an annuity to another. |
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A legal state wherein individuals or companies with outstanding debts can seek protection from their creditors by reorganizing their available assets for repayment through a federally regulated process. |
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A form of bankruptcy protection in which an individual with a steady source of income may retain some or all of their assets and repay their creditors under the terms of a court-ordered plan. |
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A form of bankruptcy in which an individual's assets are liquidated in order to repay their creditors. |
A trial before a judge without a jury. Also called a court trial. |
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The cash value of a life insurance policy payable to the owner if surrendered to the issuing company. |
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The cash amount payable to the owner of a life insurance policy if said policy is canceled or terminated. |
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Ongoing periodic payments paid to the legal guardian of one's child, usually a former spouse after separation or divorce, intended for financial support of the child. |
Child Support Payoff Letter |
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A legal document specifying an amount an individual owes for child support. |
A legally binding ruling, written by a judge or another entrusted officer of the court. |
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An attorney who files a petition for a court order. |
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An amount paid out to the beneficiary of a life insurance policy at the end of the life of the insured person. |
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In U.S. tax policy, a deduction is a dollar amount subtracted from an individual's gross income for a legally eligible expense. |
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A annuity in which payments are delayed until a specified time in the future. |
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A type of Deferred Annuity where the annuity owner specifies a fixed amount of income guaranteed during the income phase. |
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A person who relies on another individual for financial support. In U.S. tax law, a dependent entitles a taxpayer to deduct a certain amount from his or her income taxes. |
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The interest rate calculated to determine the present value of future cash flows. |
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The present value of future payments, calculated by discounting future payments to their present worth. |
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A legal document prepared by a court stating the names of the divorced parties, the date of divorce, the divorce case numbers, and the terms of the divorce. |
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An arrangement in which a trusted third party holds money or documents according to established terms. |
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The sum of an individual's worth, including money, property, debts and obligations. |
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The process of arranging for the administration, management and distribution of an estate, in preparation for an individual's death. |
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A tax assessed on the estate of a deceased person, to be imposed during transfer of his or her estate to its inheritors. |
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The stated amount in an insurance policy, to be paid in case of the death of the insured, or upon maturity in an investment. |
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A claim by the federal government against the property of an individual, in order to repay delinquent taxes. |
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A complete statement of income from all sources, assets, liabilities and monthly expenses. |
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An annuity in which a specific sum of money is paid at a fixed rate of interest for a specified period of time. |
Flexible Premium Deferred Annuity |
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An annuity contract under which the amount and frequency of premium payments may vary prior to annuitization. |
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The complete sale of a structured settlement or annuity. |
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The transfer of money from one account into another account. |
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A federal or state tax imposed on an assets given as a gift to an individual. |
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A sum paid to the owner of a structured settlement upon sale, prior to any transfer fees or other reductions in the final settlement price. Also known as a gross purchase price. |
Annuity payments to be made regardless of whether the annuitant is living or deceased. Also known as guaranteed benefit.
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An individual legally entitled and obligated to financially support and manage the affairs of another person, usually a minor or an individual incapable of taking care of his or herself. |
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A financial services company based in Bryn Mawr, Pennsylvania that purchases structured settlements and annuities. In June of 2009, J.G. Wentworth entered into Chapter 11 bankruptcy and laid off 60% of its employees. |
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Glossary
