Glossary

Illustration regulation is the body of state-level insurance regulation, derived primarily from the NAIC Annuity Disclosure Model Regulation, that governs how annuity products may be illustrated to consumers — including which values may be projected, what assumptions must be used, what disclosures must accompany the illustration, and what limits apply to hypothetical performance representations. Why it matters Illustration regulation is the principal mechanism by which the structu

An immediate annuity is any annuity contract in which income payments commence within one year of issue, with the single premium immediate annuity (SPIA) as the dominant variant in current US markets. Why it matters The immediate annuity is a temporal classification — income begins now rather than later — and in current US markets the category is dominated by the single premium immediate annuity (SPIA). Naming the category clarifies that "immediate annuity" and "SPIA" are not enti

An in-force illustration is a document provided to the contract owner during the life of an annuity contract — periodically or upon request — that presents current values, recent crediting or performance, and projections of future contract behavior under specified assumptions, distinct from the illustration provided at the point of sale. Why it matters The in-force illustration is the principal mechanism by which a contract owner can evaluate, after purchase, how the contract is a