Finding the right policy to protect your future is no small feat; learning about insurance terms and concepts can lead to the understanding you need to make the best-informed decisions.
At American Gulf, we believe in making basic insurance knowledge accessible as part of our mission to help you select the products that best fit your long-term plans.
IRS provision that allows the tax-free transfer of an insurance policy to another for the same policyholder.
Savings period for an annuity during which premiums are regularly paid and its value increases
Person whose life expectancy is the basis to calculate annuity income benefits
Process through which the premiums and interest of a deferred annuity become a stream of income
Insurance contract where periodic payments and interest over a specificized period of time are later returned as income, typically during retirement
Unit used in interest rates to represent minor changes in percentages; a one-hundredth of a percentage point (0.01%)
Person or entity named in a life insurance or annuity policy and entitled to a death benefit
Money paid to a policyholder or beneficiary after a covered event or loss
Value of an annuity determined by paid premiums and accrued interest
Interest earned on both the principal money amount and the accumulated interest from it, leading to exponential earnings
Money paid to a beneficiary upon the passing of the policyholder
Insurance contract with a fixed interest rate, independent of market fluctuations
Single payment that covers a monetary sum in full
A monetary adjustment that some annuity providers apply to a contract if the owner makes withdrawals beyond what’s allowed during the surrender period (Annuity.org)
A Single Premium Deferred Annuity primarily intended for customers seeking a long-term retirement savings vehicle: it is suitable for use as an IRA or other qualified account as well as an attractive alternative to CDs or other taxable vehicles
Payments made by a policyholder to an insurance company per a contract
Person who acquires and owns/is covered by an insurance policy
The IRS-mandated minimum annual withdrawal amount from tax-deferred retirement accounts for participants aged 70½ or 73. Annuities held inside tax-deferred retirement accounts, such as 401(k) plans or IRAs, are subject to RMDs (Annuity.org)
An add-on to a basic insurance policy that modifies its coverage
Ways in which an insurance policy’s benefits can be paid out to the policyholders or their beneficiaries
Fee owed by a life insurance or annuity policyholder to an insurance company if the policy is cancelled by the policyholde
Amount received by a life insurance or annuity policyholder from an insurance company if the policy is cancelled by the policyholder
Insurance contract that allows the accumulation of money over time, with a deferred payment date until which taxes won’t be deducted
Fixed annuities can be a smart choice as part of a diversified retirement portfolio and will allow you to earn money safely for a period until you’re ready to use it.
Preneed insurance provides coverage for funeral expenses with a specific funeral provider, protecting your family’s finances, their peace of mind, and your end-of-life wishes.
Whether you are exploring your first annuity or looking to grow your preneed offering, our team is ready to guide you every step of the way.
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