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 - Annuity Settlement Payments
- Annuity payments are either bought or sold. Those who purchase annuity payments often offer a variety of plans, such as complete payment, partials, shared, and deferred plans. Each plan has its own guideline as to what the terms and conditions include. When a person agrees to sell or buy annuity...
- 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
- 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
- The Perfect Mix
- An annuity provides a steady stream of income until death, removing the possibility of outliving one's money. Part of reaching that goal is laddering, which is more effective than buying the annuity all at once. Article suggests taking a life annuity ladder and adding an investment portfolio that results a...
- White papers 2003-01-01
- Variable Annuity Calculator
- Contributing to a variable annuity creates long term tax deferred growth. Use this tool to see how a variable annuity might fit into your retirement plan.
- Tools & templates 2008-01-01
- Annuity Payments - Annuity Payment Plans
- Annuity payment plans are pensions that ensure one's future. The retirement pay or ongoing sums of payment reduce overhead fees. The allowances of annuity payments come in smaller sums in regular intervals; however, the overhead fees are, eliminated in most instances. Accordingly, annuity payments are income, which money received over...
- White papers
- Variable Annuities: What You Should Know
- This is a general description of variable annuities – what they are, how they work, and the charges you will pay. Before buying any variable annuity, however, you should find out about the particular annuity you are considering. Request a prospectus from the insurance company or from your financial professional,...
- White papers 2002-06-19
- What Are The Tax Advantages Of An Annuity?
- Deposits into an annuity are not tax-deductible; however you may not have to pay taxes on the interest earned on a tax-deferred annuity until distributions occur. This tax-deferral period can have a dramatic effect on the growth of an investment. Use this tool to compare the tax advantages of saving...
- Tools & templates 2008-01-01
- Annuity Payments - Pensions and Annuity Payments
- Annuity payments can be sold or bought. Many companies online offer to buy annuity payments, which the company will offer the person a large lump sum of cash, or else to offer to repay the person in installments over a course of time. The person may get a large sum...
- White papers
- Annuity Payments - Variable Annuity Payments
- Insurance companies often offer annuity payments in variables. The insurance company will agree with the buyer, agreeing to pay the variable contract holder episodic installments. The buyer must make a payment now to receive the benefits, or else agree to pay annuity payments over an extended time. Overall, three types...
- White papers
- VALIC reports top Morningstar rankings for eight variable annuity funds
- HOUSTON--BUSINESS WIRE--Nov. 29, 1995--The Variable Annuity Life Insurance Company VALIC, a leading commercial provider of variable annuity contracts, reports that seven of the equity fund options and one income fund within its Portfolio Director variable annuity contract ranked near the top of their respective categories, according to Morningstar's Variable Annuity/Life...
- Research articles 1995-11-29
- Annuity Payments - What a Person Should Know
- An annuity payment is money paid to the person from structured settlements, inheritance, casino winnings, lottery winnings, real estate, and so forth. Structured settlements are often solitary premium or top annuities, which annuity services will purchase from a person based on pre-arranged payments. The annuity payment options compare to investments.
- White papers
- Aetna Life Insurance and Annuity assumes Confederation Life Insurance and Annuity businesses
- HARTFORD, Conn. and ATLANTA--BUSINESS WIRE--Oct. 2, 1995--Aetna Life Insurance and Annuity Co. ALIAC and Georgia Insurance Commissioner John W. Oxendine, in his official capacity as Rehabilitator of Confederation Life Insurance and Annuity Co. CLIAC, today announced the closing of the Assumption Reinsurance Agreement under which ALIAC assumes the individual life,...
- Research articles 1995-10-02
- Fixed Annuity Calculator
- A fixed annuity can provide a very secure, tax deferred investment. It can provide a guaranteed minimum interest rate, with no taxes due on any earnings until they are withdrawn from the account. Use this tool to help you determine how a fixed annuity might fit into your retirement plan.
- Tools & templates 2008-01-01
- Adverse Selection in Insurance Markets: Policyholder Evidence From the Annuity Market
- This paper investigates the importance of adverse selection in insurance markets. It finds systematic relationships between ex-post mortality and annuity policy characteristics, such as whether the annuity will make payments to the estate in the event of an untimely death and whether the payments from the annuity rise over time....
- White papers 2002-08-01
- Annuity Payments - Annuity Payment Options
- Annuity payment plans have various options for both buyer and sellers to choose. Most people step into annuity payment plans without learning all the details. Sellers often hear the word large sum of cash and will fill out an application, wait for reply, and not bother to read the details....
- White papers
- Comparing Annuity Payment Options
- Many people step into annuity payment plans, all to find out later they are unsure of the decision they made. The annuity plans available to them include the equity-index, fixed rate and variable rate payment plans. Annuity plans often come with fees. For instance, if a person chooses the variable...
- White papers
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