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â¢ Insured Earnings is the earnings as. described in your policy and used to. calculate your employeeâs benefits. â¢ It can vary depending on the definition. you choose for each eligibility group. â¢ Changes to insured earnings become. effective at the Insured Earnings.
An annuity policy is a contract between you and an insurance company (the issuer). In its simplestform, you pay the insurance company money, they invest it to earn taxâdeferred returns, and thenthey pay the principal plus earnings back to you and/or your beneficiary.ayments received by the beneficiaries after the owner's death may be classified as income inrespect of a decedent (IRD) . Payments that exceed principal are taxable as ordinary income andare also includable in the owner's gross estate for estate tax purposes.