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Buffer Annuity

A type of annuity that combines the features of both variable annuities and indexed annuities. In other words, it is...

Indexed Annuities

A type of annuity in which an insurance firm credits an annuity owner with a return that is based on...

Surrender Fee

A sort of penalty that a insurance firm charges to an investor (policyholder/ annuity recipient) for early withdrawal of funds...

Surrender Charges

A sort of penalty that a insurance firm charges to an investor (policyholder/ annuity recipient) for early withdrawal of funds...

Annuities

An annuity is a contract between an insured and an insurance firm that aims to meet the insured's retirement and...

Regulatory Pricing Risk

The risk that arises when regulators (insurance regulators) restrict the premium rates that insurance firms are allowed to charge. In...

Financial Risk

In relation to insurance and insurance contracts, financial risk refers to the type of risk that affects a contract's future...

Risky Asset Substitution

The process that an insurance firm undertakes to substitute the components of its portfolios with highly risky assets such as...

DAC

It stands for deferred acquisition costs; with respect to an insurance contract, it is a measure of cost that constitutes...

Deferred Acquisition Costs

With respect to an insurance contract, it is a measure of cost that constitutes deferred sales costs (acquisition costs) that...