Glossary

A buffer, in the registered index-linked annuity context, is a contractually defined amount of negative index return that the carrier absorbs before any loss is passed to the contract owner, typically expressed as a percentage of the index decline over a crediting period. Why it matters The buffer is the central structural feature that distinguishes registered index-linked annuities from fixed indexed annuities — fixed indexed annuities have a 0% floor on the credited return for a

A C-share variable annuity is a share class of variable annuity contract that carries no surrender charge schedule — providing the contract owner with full liquidity from contract issue — in exchange for a higher ongoing mortality and expense charge than the surrender-charge-bearing share classes (B-share, L-share, X-share) carry over their surrender periods. Why it matters The C-share structure is the variable annuity share class that resolves the liquidity-versus-cost tradeoff i

A cap rate is the maximum credit that an indexed annuity contract can receive from an underlying index over a specified crediting period, regardless of how much the index actually rises. Why it matters The cap rate is the primary mechanism through which an indexed annuity limits upside participation in the underlying index. Together with the participation rate and the spread, it determines the relationship between the index's measured behavior and what is credited to the contract.