Hybrid annuity

A type of insurance company investment that combines the benefits of both a fixed annuity and a variable annuity.

Hybrid Annuity

An annuity that allows the annuitant to make contributions to both a fixed annuity and a variable annuity at once. For example, if an annuitant contributes $1000 per month to the hybrid annuity, $800 may be allocated to the fixed annuity and $200 to the variable annuity. This provides the holder of the hybrid annuity the stability of a fixed annuity with the potential for a higher return that a variable annuity brings. A hybrid annuity is most useful for retirees who expect to live for a long time and wish to participate in the stock market.

hybrid annuity

A single annuity in which a part of an investor's payments purchase units of a variable annuity and the remaining funds purchase units of a fixed annuity.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Hybrid annuity.

With a hybrid annuity, you allocate part of your annuity's assets to providing fixed income payments and part to making variable income payments.

For example, you could buy a hybrid immediate annuity with a lump sum of $50,000, and allocate $35,000 to fixed payments and $15,000 to variable payments.

The fixed portion would lock in a specific yearly income, while income from the variable portion would depend on the performance of the underlying investments you selected.

This approach allows you to combine the advantages of both types of annuities -- regular income from the fixed and growth potential from the variable -- in a single package.

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References in periodicals archive ?

Summary: Mumbai (Maharashtra) [India], Aug 28 (ANI): Rating agency ICRA has withdrawn the rating for MEP Infrastructure Developers' bank limit of Rs 50 crore due to slower than anticipated progress in six under-construction hybrid annuity mode (HAM) road portfolio.

ICRA withdraws rating assigned to borrowing programme of MEP Infrastructure

M2 EQUITYBITES-February 7, 2019-Cube Highways to Acquire India-Based Hybrid Annuity Model Project

Cube Highways to Acquire India-Based Hybrid Annuity Model Project

"The agency has maintained a stable outlook on the overall transport infrastructure sector including toll roads, annuity roads, hybrid annuity model (HAM) projects and airports.

Stable outlook across infrastructure sector for h2 fy19, says India ratings and research

It said, "Adani Group is pleased to announce its foray into the public transport infrastructure space, with the award of the first Hybrid Annuity Road Project from NHAI." The Rs 1,140 crore project won by AEL pertains to four-laning with paved shoulder of 53.3 km stretch on Bilaspur-Pathrapali section of NH-111 (New NH-130) in Chhattisgarh under Bharatmala Pariyojana on Hybrid Annuity Mode (HAM).

Adani wins Rs 1,140 crore road project

This will be on hybrid annuity mode based on PPP model.

Uma to build ' Smart Ganga Cities'

"Projects will be awarded mostly under the hybrid annuity model.

ROAD PROJECTS WORTH RS 50,000 CRORE TO BE OFFERED UNDER PPP IN FY17

Debra Newman, CEO of Newman Long-term Care in Richfield, Minnesota, reports that most of her agency's hybrid annuity sales come from bank affiliates that are primarily moving customers out of certificates of deposit.

Hybrid annuities: almost mere? After several years of mixed reviews, what's next for these promising products in 2015?

Debra Newman, CEO of Newman Long Term Care in Richfield, Minnesota, reports that most of her agency's hybrid annuity sales come from bank affiliates that are primarily moving customers out of certificates of deposit.

The little annuity product with big buying potential

The subject might have just gotten a bit more approachable, however, with Genworth Financial's new take on its hybrid annuity that offers a single-premium, non-qualified deferred annuity bundled with a long-term care insurance rider.

Easy rider redux; advisors might find a tough subject easier to broach with clients

Summary: New Delhi [India] May 2 (ANI): National Mission for Clean Ganga (NMCG) in collaboration with PTC Financial Services Limited organized the 4th Consultative Meeting on 'Development of Sewage Treatment Plants (STP) through Hybrid Annuity Mode (HAM)' at India Habitat Centre, Delhi.