BNET Business Dictionary
Business Definition for: Annuity
- a contract in which a person pays a lump-sum premium to an insurance company and in return receives periodic payments, usually yearly, often beginning on retirement.
There are several types of annuity. They vary both in the ways they accumulate funds and in the ways they dispense earnings. A fixed annuity guarantees fixed payments to the individual receiving it for the term of the contract, usually until death; a variable annuity offers no guarantee but has potential for a greater return, usually based on the performance of a stock or mutual fund; a deferred annuity delays payments until the individual chooses to receive them; a hybrid annuity, also called a combination annuity, combines features of both the fixed and variable annuity.
Wiktionary Definition for: Annuity
- #A financial instrument where a saver (annuitant) pays a lump sum in, then receives a smaller fixed amount of money back regularly over a certain fixed period (or sometimes a vague period such as "the remainder of the life of the annuitant"). This is the opposite of regular savings.
Additional Resources
- Annuity Payments - The Value of Annuity Payments
- Annuity payments are equal amounts of money sent through a series of payments. For instance, property owners often receive annuity payments monthly. Annuity PVOA Present Value of an Ordinary Annuity is a form of annuity investment or loan. What happens is a person's payment modern day times is based on...
- White papers
- Annuity Payments - Annuity Payment Factors
- Many factors can affect annuity payments, which may include the types of plan the person agreed on. For instance, annuity payments sellers and buyers have many types of annuity plans, which include combinations of variable and fixed, or fixed and variable rate annuity plans. Various other aspects factor into annuity...
- White papers
- Annuity Payments - Annuity Payments Defined
- Annuity payments are similar to stock bonds. The difference is the lows and highs in stock exchange vary, thus if the stocks are low the person has a higher risk of loosing his or her bonds. Annuity payments change this since even if the market is low the person has...
- White papers
- Annuity Payments - Relating to Annuity Payments
- When a person relates to annuity payments he or she will understand that annuity payments is money paid in regular intervals, or else large sums of cash paid for settlements. The money paid yearly to the person in segments is, taken over by the annuity buyer. In other words, if...
- White papers
- Annuity Payments - Finding Annuity Payments
- Typically, those online offering annuity payments will make available plans, or choices that suit a person best. The person may want to read fine print, plans, annuity payment agreements, terms, conditions, clauses, stipulations, and more. As well, when a person chooses annuity payments he or she would want to make...
- White papers
- Safeco adds annuity via Wash. Mutual.
- * Safeco Life and Investments in Redmond, Wash., is offering Select Annuity -- a single-premium fixed annuity -- through Washington Mutual Inc. financial centers in Arizona, California, Florida, Idaho and Washington. The annuity is available throug * Safeco Life and Investments in Redmond, Wash.,...
- Research articles 2001-06-11
- IRS approves annuity trust arrangement.(Internal Revenue Service)(Tax Facts & Figures)(Column)
- The Internal Revenue Service IRS has issued a private letter ruling that approves annuity trust arrangement in cases where a trustee holding the annuity for a person is acting as that person' agent. If the trustee holding the annuity for the person is dThe Internal Revenue Service IRS has issued...
- Research articles 1996-11-11
- Prudential Annuities Ranked No. 1 in Second-Quarter 2005 Independent Broker Dealer Variable Annuity Sales; First-Ever Top Spot for Combined Prudential and American Skandia Annuity Organization
- NEWARK, N.J. -- Prudential Financial, Inc. (NYSE: PRU) announced today that Prudential Annuities, the company's U.S. annuity business, earned the top spot in second-quarter 2005 Independent Broker Dealer IBD variable annuity sales(1). The success marked a milestone for the company, as it was the first time that the combined Prudential...
- Research articles 2005-09-28
- Reversionary annuity approved for patent.(US Patent Office's approval of patent for Allianz Life Insurance Company of North America's Family Income Legacy annuity)
- US Patent Office has approved the patent for Allianz Life Insurance Company of North America's Family Income Legacy annuity. The reversionary annuity requires a named insured, a beneficiary and a monthly premium like the basic life insurance and offers thUS Patent Office has approved the patent for Allianz Life Insurance...
- Research articles 1998-01-26
- SPDA lets buyers pick charge options. (Transamerica Life and Annuity's new single-premium deferred annuity)
- Transamerica Life and Annuity of Los Angeles, CA, has introduced Power Plus, a new line of single-premium deferred annuity products that gives policyholders great flexibility in choosing its features. Power Plus offers surrender charge periods of 3-, 6- aTransamerica Life and Annuity of Los Angeles, CA, has introduced Power Plus,...
- Research articles 1993-05-24
- IRS OKs switch of qualified annuity. (Section 1035 exchange of one annuity contract for another)
- The Internal Revenue Service allows a Section 1035 exchange of one annuity contract for another when the original annuity is part of a qualified retirement plan. The exchange is allowable if it satisfies the applicable minimum distribution regulations, foThe Internal Revenue Service allows a Section 1035 exchange of one annuity...
- Research articles 1992-11-02
- Annuity offers medical option.(Protective Life Corp.'s Protective ProPayer Income Annuity)(Brief article)
- A new immediate annuity from Protective Life, Protective ProPayer Income Annuity, offers prospects the option of medical underwriting. The option would enable people who have certain medical conditions, including a history of heart attacks, strokes o A new immediate annuity from Protective Life, Protective ProPayer ...
- Research articles 2006-05-01
- Schwab Expands Variable Annuity Offering With Low-Cost Schwab Signature Annuity for Affluent Clients
- Business Editors SAN FRANCISCO--BUSINESS WIRE--June 19, 2001 New annuity product intended as retirement supplement for clients who have already maximized contributions to IRAs or 401 ks; web-based annuity platform expands online services. Seeking to broaden the range of products and services it offers clients, Charles...
- Research articles 2001-06-19
- VA wedded to market-value annuity. (American Skandia Life's variable annuity)
- American Skandia Life, Shelton, Conn., has wedded a variable annuity and a market-value adjusted annuity into an annuity package designed for distribution through stockbrokers and financial planners. An affiliate of ther Skandia Group, an international firm that has offered reinsurance in the United States...
- Research articles 1991-05-13
- Fitch lowers Annuity & Life Re Rating to 'A-'; RW Negative. (Fitch Ratings: Advertisement).(Brief Article)
- Fitch Ratings has lowered the insurer financial strength rating of Annuity & Life Reassurance, Ltd. (Annuity & Life Re) to 'A-' from 'A' and lowered the indicative rating on Annuity & Life Re Holdings, Ltd.'s shelf registration to 'BBB-' from 'BBB'. Both ratings have been place...
- Research articles 2002-08-19
- Annuity for bank market has nursing home waiver.
- Annuity For Bank Market Has Nursing Home Waiver AIG Life and Essex Corp. have included a "nursing home waiver" in their new flexible premium deferred annuity for the financial institution marketplace. Called the American Classic Annuity, the product is already approved...
- Research articles 1990-11-19
- American Skandia Launches Web-Based Annuity Enrollment; State-of-the-Art Platform Streamlines Application Process
- Business Editors SHELTON, Conn.--BUSINESS WIRE--Sept. 9, 2002 American Skandia Life Assurance Corporation ("American Skandia"), one of the nation's leading financial services providers, has launched a Web-based annuity application platform powered by Annuity Net technology to offer paperless annuity applications online at www.americanskandia.com. The American Skandia Online Annuity...
- Research articles 2002-09-09
- 3 more equity index annuities make mkt. debuts. (products from Delta Life and Annuity Co., Transamerica Life Insurance and Annuity Co. and Unity Mutual Life Insurance Co.)
- Insurance companies have rolled out three new equity index annuities EIA, boosting the total number of EIA products on the market to nearly two dozen. The new products include Delta Life and Annuity Co.'s Index Advantage International, Transamerica Life Insurance and Annuity Co.'s Select Index Annuity and Unity Mutual Life...
- Research articles 1996-12-23
- Manulife North America Receives Top Honors From DALBAR for Annuity Service
- Business Editors BOSTON--BUSINESS WIRE--Jan. 24, 2000 Manulife Financial's annuity division, Manulife North America The Manufacturers Life Insurance Company of North America, received the 1999 DALBAR Service Award for Annuity Investors on January 18, 2000. For the second year in a row, Manulife North America won the Annuity Service...
- Research articles 2000-01-24
- American Life Insurance of NY Launches Direct Annuity To Registered Investment Advisors Offering 85 Underlying Funds from 12 Fund Families With No Insurance Fees
- Business Editors NEW YORK--BUSINESS WIRE--June 7, 2002 The American Life Insurance Company of New York (`American Life') is launching Direct Annuity, a new variable annuity for registered investment advisors ("RIA"s). Direct Annuity is the industry's first variable annuity without any insurance charges. American Life's paperless, all-electronic process...
- Research articles 2002-06-07
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