Immediate Annuity Definition

N an annuity that starts less than a year after its purchase.

Immediate annuity definition. Immediate annuities are purchased with a single lump sum premium payment. An immediate annuity is an annuity that starts paying out immediately after it is purchased. An immediate annuity is a contract under which a company agrees to give you a fixed amount of money per month starting immediately.

An immediate annuity as opposed to a deferred annuity potentially offers the highest income for life of the two types. What Is an Immediate Annuity. An immediate annuity in this instance is payable from the date of termination from the Public Service.

Immediate payment annuities also called single-premium immediate annuities or SPIAs are annuities that begin making payments to the owner immediately within one year of purchase. Immediate annuity n an annuity that starts less than a year after its purchase Compare deferred annuity. Banking Finance an annuity that starts less than a year after its purchase.

What Is an Immediate Variable Annuity. Collins English Dictionary Complete and Unabridged 12th Edition 2014 HarperCollins Publishers 1991 1994 1998 2000 2003 2006 2007 2009 2011 2014. An immediate payment annuity is a contract between an individual and an insurance company that pays the owner or annuitant a guaranteed income starting almost immediately.

Immediate annuity rates depend on your upfront payment amount contract terms age and gender. An immediate annuity allows you to turn a one-time lump sum payment into a guaranteed series of payouts that generally begin within a year of the annuity issue date. Immediate annuities are most commonly purchased by people who have accumulated a sum of money and are ready for retirement.

An annuity with payouts that commence shortly within months after the annuity has been purchased. An annuity bought with a single premium with payments to the annuitant to begin at the end of one payment period as a month or a year. How Does Immediate Payment Annuity Work.