Fixed benefits

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Fixed benefits

Payments to a beneficiary that are paid in fixed preset amounts and are not variable.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
For example specific illness (like cancer) based product that has both fixed benefit and indemnity components.
The flip side is that market-related investments are subject to market risks unlike the end-of-service gratuity which is a fixed benefit. The crux is the proper management of collected funds.
The tri agencies have worked to narrow the scope of that ACA provision by declaring that an indemnity policy is an indemnity policy only if it pays a fixed amount of benefits per duration of time, rather than a fixed benefit when a covered condition occurs.
They are able to do so because they had fixed benefit retirement plans.
The pamphlet's description of guaranty fund coverage is also telling: "Generally, immediate and deferred annuity contracts issued to a New York resident by a licensed life insurance company that provide fixed benefit guarantees are covered by the Life Insurance Company Guaranty Corporation of New York for up to $500,000" As of the closing of the ELNY restructuring plan this past August, all of the assets of the life guaranty funds in New York were transferred or committed to the new DC captive assuming the restructured ELNY contracts.
Barra & Associates Health Division offers a wide selection of health insurance products such as accident, critical illness and fixed benefit plans that provide comprehensive and affordable coverage for both individuals and families right now.
The firm said that it has launched the new healthcare solution, 'Reliance Life Easy Care Fixed Benefit Plan' for individuals.
In contrast, term plans have a fixed benefit. The nominee gets the full amount, no matter at which point of the policy tenure the claim is made.
But they create a fundamental problem; because they provide a fixed benefit, not payable until retirement and without regard to asset performance, TDBs create a fixed corporate liability.
The TPA would motivate plan members to shop for their health care by assigning a fixed benefit to every procedure and pharmaceutical.