Annuity Meaning

This variation is in major part linked to market performance of the investments made by the pension fund or pension plan that the individual is invested in.

Annuity meaning. An amount payable at regular intervals as yearly or quarterly for a certain or uncertain period. An annuity is an insurance product that allows you to swap your pension savings for a guaranteed regular income that will last for the rest of your life. - Meaning and Concept.

Annuity - Definition Meaning An annuity is a contract between the policyholder and the insurance company wherein the policyholder needs to make either lump-sum payment or. How much you get is determined by the rate the annuity provider offers. A fixed amount of money paid to someone every year usually until their death or the insurance.

The present value of the annuity is the amount of money that would be needed now to generate those future payments. The grant of or the right to receive an annuity his will included. - Meaning and Concept.

An annuity just like a perpetuity is a shortcut used while making present value calculations. The annuity amount chosen at policy inception is guaranteed for life. A fixed sum payable at specified intervals esp annually over a period such as the recipients life or in perpetuity in return for a premium paid either in instalments or in a single payment.

Unlike the perpetuity which is very difficult to find in real life we find examples of annuity all around us. People who have serious health problems should be offered a higher rate than someone whos likely to live for many years. 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.

Once purchased the annuity will provide you with income payments which can be made monthly quarterly half-yearly or yearly. An annuity is an insurance contract that exchanges present contributions for future income payments. Sold by financial services companies annuities.