Glossary

A period certain annuity is an arrangement under which the insurer makes scheduled income payments for a contractually specified fixed period, with payments continuing for the full period regardless of whether the contract owner survives, and ceasing at the end of the period regardless of whether the contract owner is still living. Why it matters The period certain annuity is a fixed-term cash flow arrangement rather than a lifetime income claim — payments are guaranteed for a spe

Persistency is the rate at which annuity contracts remain in force over a defined period rather than lapsing, typically measured as the percentage of contracts (or contract value) still in force at the end of the period relative to those in force at the beginning, and used by carriers in pricing, capital management, hedging, and statutory reporting. Why it matters Persistency is one of the principal operational assumptions in annuity pricing and reserving. Carriers price products