Inflation-Protected Annuity

Definition

  • An annuity contract where the rate of return is guaranteed to be equal to or above that of the rate of inflation. An inflation-protected annuity ensures that the purchasing power of an annuitant's retirement income does not decrease over time.

Synonyms
inflation rider, inflation shielded annuity, inflation protection rider

Related Terms and Acronyms

  • Annuity Definition,
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
    • A financial instrument that disperses a number of payments over a set period of time.
  • Annuity Contract Definition,
    • A contract that outlines each party's responsibilities as they relate to an annuity.
  • Deferred Annuity Definition,
    • An annuity that makes payments to the annuitant at some date in future instead of immediately.
  • Disinflation Definition,
    • A reduction in the inflation rate as a result of either government policy or a decline in economic activity.
  • Indexed Annuity Definition,
    • An annuity where investment performance is pegged to a stock index.
  • Inflation Definition,
    • A rise in the average level of prices in the economy.
  • Inflation Protection Definition,
    • A protection found in some insurance policies that allows policy limits to increase with inflation.
  • Life Annuity Definition,
    • An annuity that will continue to make payments until the death of the annuitant.
  • Maturity Guarantee Definition,
    • A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
  • Return Definition,
    • Any increase in value or in income you earn on purchase or investment.
  • Secondary Market Definition,
    • A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
  • Security Definition,
    • Property designated as collateral.
    • A document stating ownership of a stock or bond.
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
  • Stock Definition,
    • A share of the ownership of a company.
  • Variable Annuity (VA) Acronym,
    • An annuity where the payments received by the annuitant in the income phase of the annuity vary depending on how well the insurer's investment portfolio has performed.
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