Interest Earnings

The amount of interest credited to an annuity or life insurance policy and is in addition to the premium or premiums paid to the insurance company.

Interest Rate

The percentage amount that an annuity or life insurance policy will earn over a stated period of time, as determined by the insurance company.  

Irrevocable Life Insurance Trust (ILIT)

A trust that cannot be amended or changed by either the owner or beneficiary of one or more life insurance or annuity policies and states how the money in the policy or policies will be distributed at death. 

Joint Annuitant

A person whose life—jointly with the primary annuitant—annuity payments are based on and who also receives the benefits. 

Last-In, First-Out

In the case of payments from a life insurance policy or non-IRA annuity, for tax purposes, you are receiving your interest earnings first, and the money you paid in second. After all payments have been made on your interest earnings and the value of your annuity or life insurance policy equals what you paid in, your remaining payments will not be taxed.

Lifetime Income

Income payments that continue for the rest of your life, no matter how long you live.

Living Benefits

Income payments paid to the annuitant or life insurance policy owner while living. Living benefits vary depending on the policy, but typically include guaranteed payments over a period of time, including the life of the annuitant or owner. Benefits may also include long-term care and nursing home riders.

Long-Term Care Rider

A benefit available on some annuities and life insurance policies that will pay for qualified long-term care services. The amount paid and the services covered vary by policy, but often include coverage in a nursing home and in-home health care. 

Longevity Risk

The risk of outliving your money.

Market Risk

The risk of losing money invested in the stock market.


A federal/state assistance program to provide medical coverage for certain individuals and families with low incomes and resources.


A federal assistance program to provide hospital and medical expense insurance to those 65 years of age and older.

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