Annuity Define

First and foremost an annuity is a product which you purchase from either a super fund or life insurance company with a lump sum using either money from your superannuation or regular old savings.

Annuity define. The grant of or the right to receive an annuity his will included. The amount you are paid. The pension freedoms opened up more choices but opting for an annuity will still be right for some people.

An income annuity is a financial product designed to swap a lump sum amount for guaranteed periodic cash flow eg monthly or annual payments. Once purchased the annuity will provide you with income payments which can be made monthly quarterly half-yearly or yearly. əˈnjuːɪtɪ.

Annuities are a contract between yourself and an insurance company to receive regular payments beginning either immediately or in the future. A deferred annuity is an insurance contract that promises to pay the buyer a regular income or a lump sum of money at some date in the future. An entitlement to a specified sum of money that lasts for the duration of the life of the beneficiary or annuitant.

Annuities are a type of contract that allows one party the annuitant to make regular deposits or premiums and the other party the company selling the annuity agrees to pay back those depositors or paid-in customers with an agreed-upon sum at given. A fixed amount of money paid to someone every year usually until their death or the insurance. Collins Dictionary of Law WJ.

An annuity in very simple terms is basically a contract between two parties wherein one party pays the lump sum amount at the start or series of payment initially and in return will get the period payment from the other party. The right to receive or the duty to pay such a sum. Annuities may be created under a trust or they may be purchased from a life insurance company in which case no trust is needed.

Annuity a series of equal payments at fixed intervals from an original lump sum INVESTMENTWhere an annuity has a fixed time span it is termed an annuity certain and the periodic receipts comprise both a phased repayment of principal the original lump sum payment and interest such that at the end of the fixed term there is a zero balance on the account. An annuity is a financial product that pays out a fixed stream of payments to an individual primarily used as an income stream for retirees. An amount payable at regular intervals as yearly or quarterly for a certain or uncertain period.