Group Deferred Annuity
Contract for retirements benefits in which an entire group of employees is underwritten, as opposed to a single annuity for each employee. Each premium pays for an increment of a paid-up annuity; thus a group deferred annuity is a series of single premium paid-up annuities. It may be considered an allocated funding instrument for purchasing retirement benefits. Single premium paid-up annuities that have already been purchased guarantee that an employee will receive retirement income whether or not the employer remains in business at the time he or she retires.
Popular Insurance Terms
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Annual premium expressed on a proportionate basis such as monthly, quarterly, or semiannually. ...
Percentage return appropriated by the insurer for an immediate variable annuity when the insurer calculates the initial income payment to the annuitant. If the variable annuity's underlying ...
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