A-B Trust

A joint trust created by a married couple for the purpose of minimizing estate taxes. An A-B trust is a trust that divides the assets in two upon the death of the first spouse. 

Account Value

The sum of all premiums you’ve paid in, plus accumulated interest, minus the amount of any withdrawals. The account value is not necessarily the same as the surrender or income value.

Accountant

Accountants primarily provide tax advice and file tax returns in an attempt to legally minimize your taxes. In most cases, they will represent you with the IRS if you are audited.

Accumulation Period

The period in an annuity contract when annuity owners earn interest on the money they have paid into the annuity. The interest compounds and your annuity grows over time. You do not pay taxes on the interest earned while it is growing, they are due only when you take distributions from the annuity.

Annuitant

The person on whose life the annuity payments are based while the owner is living.

Annuity

An insurance policy designed to pay income for life or a specified period of time. Annuity premiums are paid to the insurance company (insurer) and the insurer promises to pay out money from the annuity in a series of guaranteed payments.