Fixed benefits

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 ?
Elegant Group Chairperson, Mohamed Shaheen, said that the agricultural and industrial sectors are currently considered a safe mechanism for investment, with returns exceeding the fixed benefits of bank savings, especially with the state's efforts to encourage direct investment and decrease bank interest rates during the coming period.
Sun Life cancer insurance policy provides fixed benefits for early detection and treatment of cancer.
The other is to shift from a pure PAYG system to a mixed system that supplements fixed benefits with returns from financial investments.
At a time when many seniors are struggling to make ends meet, living on fixed benefits and faced with rising costs for housing and other necessities, the Protection of Social Security Benefits Restoration Act is needed.
For many decades, insurers have sold health insurance policies, known as indemnity policies, that paid fixed benefits when insureds needed specified types of care, such as hospital care.
The insured may have an amount left to pay after the plan pays the fixed benefits. Both the agent and his or her client should read through the schedule of benefits in order to understand what will be covered and how much the plan will pay for various services.
Cover for disability will provide fixed benefits, depending upon the severity of the injury, and irrespective of the horse's value or use.
In times of sickness and unemployment, fixed benefits were payable, and to the retired and widowed went a weekly pension.
of Canada, et al), the English Court of Appeals held that a reinsurance program that offered fixed benefits to an insurer that was exposed to variable liabilities nevertheless adhered to the insurance requirement of demonstrating an insurable interest.
Employers, squeezed by high health care premiums that take a bigger slice of a fixed benefits pie, are calling for more creative and cost-efficient group benefits packages.
"With fixed benefits, everything is under the control of the payroll department, but with flex this department is no longer able to deal with all payroll queries."
This indicates that these companies can no longer afford to sustain their current defined benefit plans, where companies assume responsibility for paying out fixed benefits, unless some changes are effected.