Irrevocability

The inability to amend or change a decision or contract. This term is important in the world of annuities because certain annuities—particularly in years past—involved financial decisions that are binding for long periods of time. The irrevocable nature of the decision would present high emotional or psychological barriers for potential purchasers or annuities. In reality, though, the current annuity marketplace provides product options that make the decision to purchase an annuity much less onerous and binding. An example would be guaranteed living benefits that can be attached to variable annuities.