What Is The Definition Of Annuity

Definition of Life Annuity Definition.

What is the definition of annuity. The annuitant has to pay a predetermined payment or a series of regular payments till heshe is working. The payments can be different amounts but must occur regularly - usually monthly quarterly or annually. An annuity is similar to a life insurance product but there are important differences between the two.

Under the terms of an annuity however the company makes its payments during the lifetime of the individualIn addition unless the annuity. Investors can fund this annuity product with sums of money at one time or in periodic payments. An annuity is a series of equal payments made at equal intervals during a period of timeIn other words its a system of making or receiving payments where the payment amount and time period between payments is equal.

Before investing in one its important to understand their pros and cons. A right to receive periodic payments usually fixed in size for life or a term of years that is created by a contract or other legal documentThe most common form of an annuity is. An amount payable at regular intervals as yearly or quarterly for a certain or uncertain period.

A contract in which an insurance company agrees to pay an income for life or for a specified number of years. əˈnjuːɪtɪ. In general annuity or annuities are financial products that offer a guaranteed income stream for the buyer used primarily by people that retired.

Under the terms of a life insurance policy the insurer will generally make a payment upon the death of the insured. 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 Commencement Date The date income payments begin also known as the annuity.

Legal Definition of annuity. How Annuities Work. Annuities are insurance contracts that provide guaranteed payments for a set time period or for life.