Payout Period

The period during which an annuity distributes the account value, income value, or surrender value of the annuity to the owner, annuitant, or beneficiary. Sometimes the Payout Period is also called the Distribution Period or Income Period.

Pension Plan

Also called a defined benefit plan, a pension plan is a retirement savings plan that requires an employer to make contributions into a pool of funds that are invested. The plan defines the amount of benefit (payment) the employee will receive. 

Permanent Life Insurance

Life insurance policies that offer coverage for your lifetime, and which have the potential to build cash value. Premium payments can be flexible, and, if the policy has sufficient cash value, you can take loans and withdrawals for any purpose you wish.

Policy

A written and legally enforceable contract between you and the insurance company that dictates the insurance agreement.

Primary Insurance Amount

The benefit a person would receive if he or she elected to claim benefits at full retirement age.

Proceeds

The amount of money paid out by the insurance company to the policyholder or beneficiary once an annuity or life insurance policy is terminated or due to the death of the owner.

Provisional Income

The sum of your adjusted gross income, your non-taxable interest income, and 50 percent of the Social Security benefits you collect annually.