Definition Definition

Annuity

Annuity is fixed amount of cash to be received every year for a specified period of time. 


Annuity is an amount of money paid each year to a retired person, usually in return for a lump-sum payment. The value of the annuity depends on how long the person lives, as it usually cannot be passed on to another person. Annuities are fixed payments, and lose their value with inflation, whereas a pension can be index-linked. When people retire, they are required by law to purchase a compulsory purchase annuity with the funds accumulated in their pension fund. This gives them a taxable income for the rest of their amortisation 6 life, but usually it is a fixed income which does not change with inflation.


Annuity is a life insurance contract that pays the policy holder (annuitant) a fixed sum lat regular intervals for a specified period of time. If the annuitant dies before collecting the face value, a beneficiary receives the unpaid balance.


Annuity is a life insurance contract that pays the policy holder (annuitant) a fixed sum lat regular intervals for a specified period of time. If the annuitant dies before collecting the face value, a beneficiary receives the unpaid balance.


Annuity is a regular periodic payment made by an insurance company to a policyholder for a specified period of time.


Annuity in arrears is an annuity with a first payment one full period hence, rather than immediately.

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