Fixed benefits

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Fixed benefits

Payments to a beneficiary that are paid in fixed preset amounts and are not variable.

Fixed Benefits

In annuities and insurance, benefits that guarantee the annuitant a fixed return for the life of the annuity. Like any annuity, the annuitant buys into a policy, either with a lump sum or premiums, over a period of time. When the annuitant reaches a certain age or retirement (whichever is greater), he/she begins to receive the fixed benefits. Generally speaking, the insurance company issuing an annuity with fixed benefits invests the premiums in low-risk investment vehicles, such as bonds. This results in a smaller likelihood that the insurance company will be unable to make the payments, but also exposes the annuitant to inflation risk. See also: Variable benefits.
References in periodicals archive ?
Social Security benefit calculations are complicated, but what they boil down to is that, under the Smith plan, the fixed benefit will stay higher for low-income workers and will be lower for high-income workers.
He has performed miracles in keeping inflation down but in doing so failed to spot the political implications of giving very low increases to people on fixed benefit.
For a variety of reasons, including formerly daunting regulatory requirements for smaller companies and a more mobile workforce, defined benefit plans--those that guarantee a fixed benefit throughout retirement--have dwindled, now covering just 22.
The company sources said the new product will come in line with the implementation in April of a law allowing companies to shift their in-house employees' pension plans to new fixed benefit pension schemes.
If the participant were to take an annuity instead of a lump sum, he could provide at retirement for a fixed benefit for himself for as long as he lives, with a survivor benefit of up to 100% of his benefit payable after his death.
The TPA would motivate plan members to shop for their health care by assigning a fixed benefit to every procedure and pharmaceutical.
The core subsidiaries of the Career Sales Division being acquired by Universal are Pennsylvania Life Insurance Company and PennCorp Life of Canada, which operate through a career agency system selling primarily fixed benefit accident and health products.
is an insurance holding company whose life insurance subsidiaries underwrite and market mostly life and fixed benefit accident and sickness insurance.
Through its subsidiaries, the Company underwrites and markets life, annuities and accident and fixed benefit accident and sickness insurance to the middle market throughout the United States and Canada.
The company provides life insurance and fixed benefit accident and sickness insurance through several distribution channels including career agents, independent agents and payroll deduction programs.
PennCorp, an insurance holding company whose life subsidiaries underwrite and market mostly life and fixed benefit accident and sickness insurance, plans to fund the acquisition primarily with proceeds from a private placement of a new series of convertible preferred stock of PennCorp and funds borrowed under an existing credit agreement.