The L share annuity class is a type of annuity that is typically used by insurance companies in order to provide customers with a death benefit that is equal to the value of the annuity contract. This type of annuity is also known as a "no-lapse" annuity, which means that the annuity will not terminate if the insured person dies before the annuity's maturity date. The L share class is typically more expensive than other annuity classes, but it offers the insured person a death benefit that is guaranteed by the insurance company.
What are the risks of a variable annuity contract?
There are a few risks associated with variable annuity contracts, including market risk, interest rate risk, and longevity risk.
Market risk is the risk that the underlying investment vehicles (e.g. stocks, bonds, etc.) in the contract will lose value. This will impact the contract's value and the income payments that the contractholder will receive.
Interest rate risk is the risk that interest rates will rise, which will reduce the value of the contract and the income payments that the contractholder will receive.
Longevity risk is the risk that the contractholder will outlive the income payments that the contract provides. This risk is often mitigated by adding a rider to the contract that provides for income payments to continue for the life of the contractholder, regardless of how long they live. What asset class is an annuity? An annuity is an asset class that represents a stream of payments made at regular intervals. What are two ways an annuity is categorized? 1. Annuities can be either fixed or variable.
2. Annuities can be either immediate or deferred.
Do annuities have share classes?
Yes, annuities can have share classes. Share classes are typically used to denote different levels of risk and different fee structures within the same annuity product. For example, there may be a "Class A" share class that has a higher upfront sales charge but lower ongoing fees, and a "Class C" share class that has a lower upfront sales charge but higher ongoing fees. What does a Class C fund mean? A class C fund is a mutual fund that charges a sales commission and pays ongoing commissions to a broker. Class C funds are also known as load funds.