Glossary

A qualified longevity annuity contract (QLAC) is a deferred income annuity purchased inside a qualified retirement account that meets specific Treasury requirements, allowing the premium to be excluded from required minimum distribution calculations until income payments commence. Why it matters The QLAC is a regulatory category, not a structurally distinct product. Its significance is tax-and-distribution treatment: a QLAC allows the contract owner to defer required minimum distr

A ratchet feature is a rider mechanic that locks in upward movements in the benefit base — or another rider-defined value — preventing subsequent decreases below the locked-in level, with the term used in some contracts as a synonym for the step-up provision and in others to describe a distinct mechanic with different timing or threshold rules. Why it matters The ratchet feature is named in commercial materials and contract documents alongside the step-up provision, and the relati