Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Split-Funded Annuity

Synonyms:annuity ladder
Filed Under: annuities, estate-management, financial-banking, investments
Tags: annuity, banking, investment, life insurance

Definition of split-funded annuity

split-funded annuity
1. A grouping of two separate annuities, one an immediate payout annuity and the other a deferred annuity; a portion of the principal is immediately paid back to the annuitant in the form of regular income payments, while another portion is set aside and invested for future repayment.

Related Terms and Acronyms:

  • accumulation period (AP)   The period where an investor continues to put money into his or her investment(s).
  • annuity   A financial instrument that disperses a number of payments over a set period of time.
  • annuity ladder   A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.
  • hybrid annuity   An annuity with both fixed and variable annuity elements.
  • immediate payment annuity   An annuity where payments to the annuitant start immediately after the annuity has been set up.
  • laddering   Staggering deposits into investments such as CDs in order to vary and better the rate of return.
  • life expectancy method   A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
  • maturity guarantee   A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
  • payout phase   The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
  • wraparound annuity   An annuity that allows the annuitant to control how funds in the annuity are invested.

More Related Terms and Acronyms

Search the Glossary

Rate Comparison Calculator
It can be hard to figure out exactly how much you can afford to spend on your home, but we're here to help. We have taken the time to redesign our top-rated mortgage calculator and made it easier to use than ever before. Compare rates, evaluate terms, and calculate multiple mortgages side-by-side.
Top Rated Mortgage Calculator
Best Rates on Home Mortgages
When shopping for a home mortgage, ensure that you secure the best rates in Canada. Use the services of a mortgage broker to access the best products on the market, and get exactly what you need.
Best Rates For Home Mortgage
Debt Consolidation
You can use the valuable equity locked in your home to eliminate all of your high interest debts, including credit card debt. By consolidating your debt into a single, low interest-rate mortgage you can save yourself thousands of dollars in interest.
Refinance / Debt Consolidation Inquiry