Annuity Glossary

To help you understand Life Insurance, we have provided you with a general explanation of some frequently used terms. Note that the exact definitions of these terms can vary from company to company. Always consult your agent for the meaning of the terms applicable to your policy.

Accumulation Unit:
Money paid in or transferred into an investment division of the Separate Account is credited in the form of accumulation units. Any increase or decrease in value is based upon the investment performance of the underlying investment portfolio.

Asset Allocation:
A financial strategy for investing money into various asset classes — such as stocks, bonds and cash — based upon your financial goals, risk tolerance and time horizon. Asset allocation has two main advantages: it can help increase investment returns and reduce risk.

The person(s) who receive(s) money upon the death of the annuity's contract owner or annuitant. The contract owner decides who the beneficiary will be.

Death Benefit:

The guarantee that if you should die before you convert your Multi-Strategy Indexed annuity into regular income payments (annuitize your contract), your annuity's beneficiaries will receive the higher of the account value or a different amount specified in the annuity (such as the amount you contributed to the annuity, less withdrawals). In many Multi-Strategy Indexed annuities, the death benefit can increase over time.

Deferred Annuity:

A type of personal retirement account that provides tax-deferred growth potential for long-term goals, such as retirement. When you are ready to receive income payments, the deferred annuity provides many choices, including guaranteed income for life. There are two types of deferred annuities: fixed and Multi-Strategy Indexed.

Flexible Premium Annuity:

An annuity that accepts periodic contributions, which can usually be made at any time (as opposed to single premium).

Income for a Guaranteed Time Period Annuity:
An annuity income option that guarantees payments for a specific time period, usually from 5 to 30 years. If the annuitant dies before all payments have been made, then the owner (or beneficiary if the owner is deceased) will receive the balance of payments for the rest of the guaranteed period. You may be able to choose fixed or Multi-Strategy Indexed payments, depending on the annuity.

Income for Life Annuity:

An annuity income option that guarantees income for the life of the annuitant, no matter how long he/she lives. The amount of the payment depends on your account value and the life expectancy of the annuitant. The payment amounts may be fixed or Multi-Strategy Indexed, depending on the annuity.

Income for Life with a Guaranteed Time Period Annuity:

An annuity income option that guarantees payments for the annuitant's life, with a guaranteed number of years. If the annuitant dies during the guaranteed period, payments will continue to the annuity's owner (or beneficiary if the owner is deceased), for the remainder of the period. Many annuities also offer this option for the lives of two annuitants. You may be able to choose fixed or Multi-Strategy Indexed payments, depending on the annuity.

Individual Retirement Account/Annuity (IRA):

A tax-deferred retirement account for individuals that allows a contribution of 100% of earned income up to a maximum of $2,000 per year. (A contribution of up to $2,000 may also be made on behalf of a spouse.) With a Traditional IRA, some or all of the contribution may be tax deductible, depending on the individual's income level and coverage by qualified retirement plans. With a Roth IRA, the contribution is not tax deductible, but all earnings are tax free, provided certain conditions are met.

Minimum Distribution Service:

Federal tax law and regulations generally require that you begin taking minimum distributions from your Traditional IRAs, SEPs and SIMPLEs by April 1st of the calendar year following the year in which you reach age 70_. Some companies, including MetLife, offer a Minimum Distribution Service that calculates the minimum withdrawal required by Federal tax law for your IRA.

Savings and Investing Phase:

Time period during a deferred Multi-Strategy Indexed annuity contract when money is invested and/or left to grow on a tax deferred basis. Also known as the Accumulation Phase.

Systematic Withdrawal Program:
A program that allows for periodic payments from an annuity, for example on a monthly, quarterly, semiannual or annual basis. In a Multi-Strategy Indexed deferred annuity, you can generally make systematic withdrawals from your contract while keeping the rest of your money invested in the funding options.

Multi-Strategy Indexed Immediate Annuity:

An income annuity that begins providing income payments right away, or soon after purchase. The amount of the payments is based upon the performance of investment choices that you select.


The rate of return on an investment, generally expressed as a percentage of the current price.


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