Defined terms for the annuity market and lifetime income landscape.
Lapse is the termination of an annuity contract by the contract owner, typically through surrender or — in the case of premium-paying or flexible-premium contracts — through cessation of required premium payments, occurring before annuitization or contract maturity. Why it matters Lapse is one of the principal operational events affecting both the contract owner's position and the carrier's portfolio. From the contract owner's perspective, lapse terminates exposure to the contract
