Allocated Funding Instrument
Insurance or annuity contract used in pension plans to purchase increments of retirement benefits through contributions for each employee paid into a fund. Benefits are guaranteed to employees at retirement; the insurance company is legally obligated to pay all benefits for which it has received premiums. Pension plans, in which no funds are available to purchase benefits prior to retirement involve unallocated funding instruments (benefits were not purchased at the time premium payments were made).
Popular Insurance Terms
Insurance coverage for accidents and sickness that are not job related. ...
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Strategy that provides that all income from assets in trust be paid at least annually for the life of the surviving spouse. This trust, which prohibits transfer of any assets to anyone ...
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Sample of n elements selected from a population of A? elements in such a way that the sample has essentially the same characteristics as the population. The random sample serves as the ...
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Statement of the financial condition of the insurance company, as well as significant events during the year in which the company has been involved and/or that have affected the company. ...
Right of a beneficiary of a life insurance policy to exchange the future installments due that beneficiary for a lump sum distribution. ...
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