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
- Personal pension annuity rates
- An annuity is a financial product that converts capital into income. You can buy one with any lump sum of money, or with accrued pension funds. Currently, for money purchase pension funds you must buy an annuity by the time you reach the age of 75. However, most people buy...
- Research articles 2007-06-01
- 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
- Personal pension annuity rates
- An annuity is a financial product that converts capital into income. You can buy one with your own money and you can buy one with accrued pension funds. Currently, for money purchase pension funds, you must buy an annuity by the time you reach age 75. Most people buy their...
- Research articles 2002-10-01
- Personal pension annuity rates
- An annuity is a financial product that converts capital into income. You can buy one with any lump sum of money or you can buy one with accrued pension funds. Currently,. for money purchase pension funds, you must buy an annuity by the time you reach age 75. However, most...
- Research articles 2003-08-01
- 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
- Personal pension annuity rates
- An annuity is a financial product that converts capital into income. You can buy one with any lump sum of money or you can buy one with accrued pension funds. Currently, for money purchase pension funds, you must buy an annuity by the time you reach age 75. However, most...
- Research articles 2002-11-01
- Personal pension annuity rates
- An annuity is a financial product that converts capital into income. You can buy one with any lump sum of money or you can buy one with accrued pension funds. Currently, for money purchase pension funds, you must buy an annuity by the time you reach age 75. However, most...
- Research articles 2002-12-01
- Personal pension annuity rates
- An annuity is a financial product that converts capital into income. You can buy one with any lump sum of money or you can buy one with accrued pension funds. Currently, for money purchase pension funds, you must buy an annuity by the time you reach age 75. However, most...
- Research articles 2003-02-01
- Personal pension annuity rates
- An annuity is a financial product that converts capital into income. You can buy one with any lump sum of money or you can buy one with accrued pension funds. Currently, for money purchase pension funds, you must buy an annuity by the time you reach age 75. However, most...
- Research articles 2003-05-01
