Actuarial Fairness
Definition
Actuarial fairness is the principle that each participant in a lifetime income arrangement contributes a premium that exactly equals
Embedded Spread
Definition
Embedded spread, in the cost-structure sense, is the cost-structure value that applies to lifetime income arrangements where
Pooling Multiplier
Definition
Pooling multiplier is the factor by which the income produced per dollar of premium increases when capital is contributed
Cost of Extra Protection
Definition
Cost of extra protection is the additional capital required to extend the planning horizon of a lifetime income arrangement,
Deferral Multiplier
Definition
Deferral multiplier is the factor by which the income produced per dollar of premium increases when income commencement is
Insurer Load
Definition
Insurer load is the total cost imposed by an insurer on a transferred-risk lifetime income arrangement, expressed as
Asset-Backed Claim
Definition
An asset-backed claim is a lifetime income claim in which the income is paid by an insurer from
Cost Structure
Definition
Cost structure is the structural property of a claim that specifies how costs are charged and how transparent they
Adjustment Mechanism
Definition
Adjustment mechanism is the structural property of a claim that specifies what changes when conditions change and who controls
Income View
Definition
Income view is the Longevity Standard analytical frame that fixes a savings balance and compares the lifetime annual income
Cost View
Definition
Cost view is the Longevity Standard analytical frame that fixes a target level of lifetime annual income and compares
Realized Value
Definition
Realized value is the share of the theoretical pooling benefit that a real lifetime income product actually delivers, expressed
Cost of Income
Definition
Cost of income is the capital required today to produce one dollar of lifetime annual income, evaluated against a
Solo Drawdown
Definition
Solo drawdown is self-managed drawdown of savings to a chosen planning age, with no remaining value past the
Frictionless Pool
Definition
A frictionless pool is a theoretical mortality pool that delivers the maximum lifetime income pooling could produce, used as
