Deferred Annuity: An annuity providing for the income payments to begin at some specified future date. Deferred Compensation: Arrangements by which compensation to employees for past or current services is postponed until some future date. Deferred Group Annuity: A type of group annuity providing for the purchase each year of a paid-up deferred annuity for each member of the group, the total amount received by the member at retirement being the sum of these deferred annuities.

Premium: The sum paid by a policyholder to keep an insurance policy in force. Premium finance: allows the insured to pay part of the premium when coverage takes effect and pay the rest during the policy period. Premium Loan: A policy loan made for the purpose of paying premiums. Premium Tax: A tax, imposed by each state, on the premium income of insurers doing business in the state.              

Variable Annuity: An annuity contract in which the amount of each periodic income payment may fluctuate. The fluctuation may be related to securities market values, a cost of living index, or some other variable factor. Variable Annuity: An annuity under which the benefit varies according to the investment results of a life insurance company's separate account (usually invested primarily in common stocks).

Variable Life Insurance: Life insurance under which the benefits relate to the value of assets behind the contract at the time the benefit is paid. The amount of death benefit payable would, under variable life policies that have been proposed, never be less than the initial death benefit payable under the policy.                                Top of  Page