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Structured Settlement & Annuity A-Z
Here we have compiled a glossary of terms covering both structured settlements
and annuities to give you a comprehensive understanding of those components.
Annuitant
The term used to describe the annuity contract holder,
i.e., the person who buys the annuity.
Annuity
A contract between a client and an insurance company
where the client receives periodical settlement payments for a specified
length of time.
Annuity with compounding benefits
An annuity where a fixed percentage of increase is
added to each year of payment.
Beneficiary
A person or persons who "benefit" by receiving
the payments of a policy holder who has died. This is also referred to as
a "contingent payee."
Benefit
Money paid to a policyholder by his or her insurance
company.
Claim
A claim for a payment or payments from an insurance
company by a policyholder.
Claimant
The person requesting for a payment or payments as
a policyholder.
Contingent payee
A person or persons who "benefit" by receiving
the payments of a policy holder who has died. This is also referred to as
a "beneficiary."
Defendant
A person or company defending legal action from any
other person or company.
Deferred annuity
An annuity where payments are deferred until a predetermined
point in the future.
Employment claim
A claim against an employer for wrongful dismissal,
sexual harassment, racial prejudice or other such complaints.
Fixed annuity
A tax deferred annuity fixed at a rate of return
during the term of the contract, usually until the annuitant dies.
Flexible premium annuity
A tax deferred annuity that allows for contributions
at any time.
General liability
An insurance claim for damages or injuries resulting
from patronage of a private company.
Guaranteed benefit
A structured settlement that guarantees the payments
of money regardless of whether the claimant is living or dead. This is sometimes
referred as a "lifetime annuity."
Immediate Annuity
An annuity that starts paying out immediately, usually
within one month of purchase.
Life only annuity
A structured settlement designed to pay-out only
in the duration of a claimants life. Payments will cease if the claimant
dies.
Lump sum
A one-off single payment in one lump sum.
Medical malpractice
The term used to describe improper medical treatment
where the patient receives insufficient treatment to the detriment of the
patient's health, well being or even resulting in death.
Medical trust
An account operating as a trust which covers a claimant's
medical expenses.
Non-qualified Annuity
An annuity that is first subject to taxation.
Normal life expectancy
The age of which a person may be expected to live,
based on life insurance actuarial tables.
Personal injury claim
A claim made by a person who has suffered personal
harm or injury to the body or mind, including accidental injury or sickness.
Plaintiff
A person or company who takes legal action against
any other person or company.
Premium
The total cost of an annuity contract.
Qualified annuity
An annuity that is not subject to taxation.
Quote
The set cost of an insurance policy determined by
an insurance company.
Settlement agreement
A stage of settlement where all involved parties
are in agreement with one another and satisfied with the outcome of the
settlement.
Straight/straight life annuity
A tax deferred annuity fixed at a rate of return
during the term of the contract, usually until the annuitant dies.
Structured settlement
A form of settlement that pays benefits in periodic
installments instead of in one lump sum or a one-off payment.
Tax sheltered annuity
A tax-exempt annuity usually only offered to employees
of tax-exempt organizations such as hospitals, schools and some charities
for example.
Term certain annuity
An annuity where the term of the contract duration
is specified and certain, i.e. for 10 years, or 15 years for example.
Variable annuity
An annuity contract that gives the client complete
control over the annuity meaning he or she can spend the money on any number
of different investments of his or her choice. This also means they are
liable for all losses and not the insurance company.
Workers compensation
Payments paid to an employee or the employee's beneficiary
from the employer as a result of injury or death caused in the work place
that is the fault of the employer.
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