Annual Turnover means total insured value of goods in transit, covered under Special Declaration Policy, which by agreement may include all incoming and outgoing consignment comprising capital goods, raw materials, stores, finished and semi-finished products.

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UK: Defined in a business interruption policy as the turnover during the 12 months immediately before date of damage (where the indemnity period is for 12 months or less).

A life insurance product that pays periodic income benefits for a specific period of time or over the course of an annuitant’s lifetime. While life insurance insures against the possibility of dying too soon, an annuity insures against the possibility of living too long and outliving one’s income. There are several terms common to all annuities:The annuitant is the person or persons who receive the income from the annuity contract.
The conversion of a deferred annuity contract to income payments to the annuitant.

In certain types of annuities (see information on payout options below), a person who receives annuity payments if the annuitant dies while payments are still due.

Annuity Beneficiary

Annuity Owner

The person who purchases the annuity has all rights to the contract including the right to name the annuitant and any beneficiaries

. There are two basic types of annuities: deferred and immediate. Deferred annuities allow assets to grow tax deferred over time before being converted to payments to the annuitant. Immediate annuities allow payments to begin within about a year of purchase. Annuities may also be fixed or variable. Each is dis

cussed below:

Fixed Annuities

When the rate of return on an annuity is guaranteed for a specific period of time, it is known as a fixed annuity. The insurance company guarantees the rate of return and the return of principal in a fixed annuity contract. At the end of the period of initial guarantee, the insurance company may change the rate of return for an additional period. The concept is similar to purchasing a certificate of deposit at a bank.

Fixed annuities often have a surrender charge that declines every year until it disappears. For example, a fixed annuity may have a 5-year, 5% surrender charge. This means that if the annuity owner were to surrender the policy in year 1, he or she would receive only 95% of the principle. In year 2 the surrender charge would be 4%, 3% in year 3 and 0% in year 5.

Variable Annuities

The rate of return for a variable annuity is based on an underlying investment such as a mutual fund. Thus, the accumulation and the payout of a variable annuity are not guaranteed and can be sold only through a prospectus by registered representatives. There are four basic ways insurance companies charge for variable annuities:

This is a type of fixed annuity where the interest paid is tied to a stock index such as the S&P 500, the Dow Jones Industrial Average, or NASDAQ. Generally, the annuitant does not suffer losses if the index goes down but does receive gains if the index goes up. This is because only the interest on the annuity is tied to the index. The annuitant does not own any stock or index fund.

A-share Annuities The annuity owner pays an upfront sales charge just as he or she would with an A-share or full-load mutual fund. There is no surrender charge when the A-share variable annuity uses breakpoint pricing which means that the sales charge decreases as the total cumulative amount of the purchase payments increases. B-share

Annuities The sales charge for a B-share annuity is deferred, effectively creating a surrender charge. As with the fixed annuity, the annuity owner will not pay any sales charge unless he or she surrenders the contract within a specified period, usually 6 to 8 years.

C-share Annuities The C-share annuity is, in effect, a “no-load” annuity since there is no upfront or deferred sales charge. The expense factor for this type of annuity is generally higher than Ashare or B-share variable annuities. L-share Annuities This is the newest pricing option for variable annuities. Similar to B-shares, L-share annuities have a shorter surrender period than B-share annuities and expense charges less than C-share annuities.

Annuities also have several common payout options. The life option generally produces the largest payments. Insurance companies charge a portion of each payment to provide the other options.

Period Certain

With this option annuity payments are made for a specified period of time. For example, an annuitant may choose to receive payments for 10 years. The amount of principal accumulated along with the issuing company’s rate of return determines the amount of each payment.

Life with Period Certain

Payments are made under this option for the life of the annuitant but for a period no less than that specified. For example, a life option with a 10-year period certain pays for the life of the annuitant. If the annuitant dies after only 5 years, a beneficiary is paid for the remaining 5 years.

Joint and Survivor

Under the joint and survivor option, payments are made until the second of two people (normally husband and wife) dies. A period certain may be added to this option.

Life Option

While this option often has the largest annual payment, it carries the most risk for the annuitant. Payments are made as long as the annuitant lives and cease when the annuitant dies. Any excess principal and interest accumulation reverts to the issuing insurance company.

Mortality and Expense Charge Certain

assumptions are made by the insurance company in calculating the payout and death benefit of an annuity. Using mortality tables, an actuary determines the life expectancy of an annuitant. The annuitant expects a lifetime of payouts, even if the payouts exceed the original value of the annuity. The insurance company includes the risk in the premium that is charged to the annuitant.

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A life insurance product that pays periodic income benefits for a specific period of time or over the course of an annuitant’s lifetime . While life insurance insures against the possibility of dying too soon , an annuity insures against the possibility of living too long and out living one’s income . There are several terms common to all annuities

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MEDICAL: US: 1. Contract that provides an income for a period of time such as a specific number of years or for life. 2. Right to give or receive a series of payments of an amount of money. Originally this was done on an annual basis, but currently payments may be made periodically during a year or over a certain period of time. Some types of annuities are deferred annuity, immediate annuity, single premium annuity, variable annuity, whole life annuity, and life annuity.

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UK: A contract that provides an income to an annuitant for a specified term (an annuity certain) or for life (life annuity) in return for a series of contributions or a single premium. Compulsory purchase annuities are purchased at retirement on converting pension fund savings into a pension income. At death, there is usually no payment to the estate, although many annuities include a provision to pay an income to the spouse and some are guaranteed annuities. Immediate annuities provide an income from the date of acceptance, and deferred annuities at a future date. Unless part of the investment risk is transferred to the annuitant (e.g. with-profits annuity), annuity business is non-profit business and is usually matched with fixed income investments. Longevity risk is an issue for insurance companies, and a possible source of losses if annuitants live longer than expected. See AGE 75 RULE; EXEMPT APPROVED PENSION SCHEMES; IMMEDIATE CARE ANNUITY.

An amount payable annually, or an agreement for an insurer to make regular payments for a specific period.

An analysis that includes the annuity’s interest rate and how long that rate is promised, the offering company’s financial ranking, the expected monthly income, and other pertinent information.