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February 26, 2010
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Annuity Terms and Definitions

 
 

Duly Appointed Representative of the Insured's Estate
An individual named in a court order granting the individual the authority to receive, or the right to possess, your property. The order must be issued by a court having jurisdiction over your estate.

Annuitant
A former employee entitled to an annuity under a retirement system established for employees. This includes the retirement system of a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard.

Option C
Coverage, to insure your spouse and eligible child(ren), that you can elect in addition to Basic insurance. You can elect up to 5 multiples of the coverage amounts (each multiple equals $5,000 for a spouse and $2,500 for an eligible child). Also called family optional insurance.

Option B
Coverage, equal to up to 5 multiples of your annual basic rate of pay, that you can elect in addition to Basic insurance. Also called additional optional insurance.

Assignee
The individual, corporation, or trustee to which you irrevocably transfer ownership of FEGLI coverage (except Dismemberment coverage and Option C).

Accidental Dismemberment
Bodily injuries sustained solely through violent, external and accidental means, and as a direct result of the bodily injuries, independently of all other causes, and within 90 days afterwards, you lose your limb or eyesight.

Immediate annuity
An annuity that begins no later than one month after the date the insurance would otherwise stop An annuity under 5 CFR 842.204(a)(1) for which the starting date has been postponed under 5 CFR 842.204.

Age Multiplication Factor
A factor used to determine the extra amount of Basic insurance payable at the time of your death, if you die before age 45 (also referred to as the "extra benefit").

Basic Insurance
The coverage, based on your annual rate of basic pay, which you automatically have as an eligible employee unless you waive it.

Option A
$10,000 in coverage that you can elect in addition to Basic insurance. Also called standard optional insurance.

 

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Did You Know?    
 
 
Variable annuities are not suitable for meeting short-term goals
Remember: Variable annuities are designed to be long-term investments, to meet retirement and other long-range goals. Variable annuities are not suitable for meeting short-term goals because substantial taxes and insurance company charges may apply if you withdraw your money early. Variable annuities also involve investment risks, just as mutual funds do.

 


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Latest news about Annuity cases in Hawaii and nationwide:

Armed Services Committee Improves Veterans Survivor Benefit Plan
“Service members and survivors who signed up for the program will finally see some significant improvements to the SBP,” said Saxton. “We worked on...
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Department Confirms 1.4 percent Fixed Annuity Dividend for WRS Annuitants
MADISON -- Governor Doyle signed legislation today paving the way for the Department of Employee Trust Funds to pay a 1.4% fixed annuity dividend t...
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Why Haven't Price-Level Indexed Annuities Taken The Financial World By Storm
It is a pleasure to be here with you tonight. It is particularly gratifying to have the opportunity to speak to representatives of and experts abou...
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More Annuity News >

 
 

Annuity Lawyers.com Terms

 


Today's Terms

COLA, CSRS

Definition:
CSRS cost of living adjustments (COLA's) provide an increase that is equal to the rate of inflation as measured by the Consumer Price Index (CPI). CSRS cost-of-living-adjustments are provided to retirees at all ages

Market Rate of Interest

Definition:
The percentage of interest paid on certain FERS deposits and refunds. Based on the average interest earned by the Civil Service Retirement and Disability Fund in the previous year. In 1998, the interest rate is 6.75%.

Incontestability

Definition:
A statutory provision permitting erroneous enrollments that have continued for at least two years to become valid, if you have paid the applicable premiums during the period of erroneous coverage.

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Annuity Law Resources

 


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Annuity Law Hot Topics

 
Topics Related to Annuity:

  • Client Manipulation
  • Providing False Information
  • Lying to Auditors
  • Unauthorized Transactions
  • Breach of Fiduciary Duty
  • Broker Embezzlement

More Annuity Law Topics >

Hawaii Annuity-Law Attorney

 
If you live in the following cities and need an Annuity-Law attorney you should contact our Annuity-Law Attorney as soon as possible:

  • Ahuimanu
  • Aiea
  • Aliamanu
  • Ewa Beach
  • Halawa
  • Hilo
  • Honolulu
  • Kahului
  • Kailua
  • Kaneohe
  • Kaneohe Station
  • Kapaa
  • Kihei
  • Lahaina
  • Makaha
  • Makakilo City
  • Mililani Town
  • Nanakuli
  • Pearl City
  • Schofield 
  • Barracks
  • Wahiawa
  • Waianae
  • Wailuku
  • Waimalu
  • Waipahu
  • Waipio


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