annuity

annuity
A regular periodic payment ( periodic payments) made by an insurance company to a policyholder for a specified period of time. Bloomberg Financial Dictionary
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An annuity is essentially a regular income for life and is usually purchased with your pension fund when you retire. The rate of income you receive from the annuity will depend on your age and the amount of capital you invest. For example, if you are 65 years old, you will receive less as opposed to 75 years old because you are expected to have a longer life than a 75 year old. It is best to shop around rather than just accept the annuity quote given to you by your pension fund provider because there are several different options available.

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annuity an‧nu‧i‧ty [əˈnjuːti ǁ əˈnuː-] noun annuities PLURALFORM [countable]
1. INSURANCE the right to regular future payments bought from an insurer. Many people buy an annuity to provide income for them when they stop working:

• They have put most of their life savings into annuity contracts.

2. the payments from an annuity contract:

• Her annual annuity is $50,000.

deˌferred anˈnuity INSURANCE
an annuity where the first payment is made by the insurer at a fixed time after it is bought:

• Members of the pension scheme will be able to make regular contributions to a deferred annuity contract.

imˌmediate anˈnuity INSURANCE
an annuity where the first payment is made immediately or soon after the annuity contract is bought:

• A 65-year-old male could currently purchase a $100,000 single-premium immediate annuity and receive $622 a month for life.

ˌjoint anˈnuity FINANCE
an annuity shared by two people

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   An investment that pays a given stream of income for a fixed period of time. Some annuities pay that income during the lifetime of the holder.

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annuity UK US /əˈnjuːəti/ noun [C] INSURANCE
► a fixed amount of money paid to someone every year, usually until their death: »

The safety and security of an annuity give it a value that can't be measured in dollars and cents.

 »

He used $400,000 to buy an annuity that guarantees $60,000 a year of income for ten years.

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His contract includes annuity payments of about $19,000 per year paid in monthly installments.

→ See also DEFERRED ANNUITY(Cf. ↑deferred annuity), FIXED ANNUITY(Cf. ↑fixed annuity), IMMEDIATE ANNUITY(Cf. ↑immediate annuity), JOINT ANNUITY(Cf. ↑joint annuity)

Financial and business terms. 2012.

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Look at other dictionaries:

  • annuity — an·nu·ity /ə nü ə tē, nyü / n pl ities [Medieval Latin annuitas, from Latin annuus yearly] 1: an amount payable at regular intervals (as yearly or quarterly) for a certain or uncertain period 2: the grant of or the right to receive an annuity his …   Law dictionary

  • Annuity — An*nu i*ty, n.; pl. {Annuities}. [LL. annuitas, fr. L. annus year: cf. F. annuit[ e].] A sum of money, payable yearly, to continue for a given number of years, for life, or forever; an annual allowance. [1913 Webster] …   The Collaborative International Dictionary of English

  • annuity — (n.) early 15c., a yearly allowance, grant payable in annual installments, from Anglo Fr., O.Fr. annuité (14c.) or directly from M.L. annuitatem (nom. annuitas), from L. annus year (see ANNUAL (Cf. annual) (adj.)). Meaning an investment that… …   Etymology dictionary

  • annuity — ► NOUN (pl. annuities) ▪ a fixed yearly allowance, especially one provided by a form of investment. ORIGIN Latin annuitas, from annuus yearly …   English terms dictionary

  • annuity — [ə no͞o′ə tē, ənyo͞o′ə tē] n. pl. annuities [ME & OFr annuite < ML annuitas < L annuus, annual < annus: see ANNUAL] 1. a payment of a fixed sum of money at regular intervals of time, esp. yearly 2. an investment yielding periodic… …   English World dictionary

  • annuity — /an(y)uwatiy/ A right to receive fixed, periodic payments, either for life or for a term of years. Moore v. O Cheskey, App., 87 N.M. 66, 529 P.2d 292, 293. A fixed sum payable to a person at specified intervals for a specific period of time or… …   Black's law dictionary

  • annuity — /an(y)uwatiy/ A right to receive fixed, periodic payments, either for life or for a term of years. Moore v. O Cheskey, App., 87 N.M. 66, 529 P.2d 292, 293. A fixed sum payable to a person at specified intervals for a specific period of time or… …   Black's law dictionary

  • Annuity — A regular periodic payment made by an insurance company to a policyholder for a specified period of time. The New York Times Financial Glossary * * * annuity an‧nu‧i‧ty [əˈnjuːti ǁ əˈnuː ] noun annuities PLURALFORM [countable] 1. INSURANCE the… …   Financial and business terms

  • annuity — /euh nooh i tee, euh nyooh /, n., pl. annuities. 1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient s life, in consideration of a stipulated premium paid either in prior installment… …   Universalium

  • annuity — In the older sense of the term, a yearly payment of a certain sum of money granted to another in fee, for life, or for years. In the modern sense, a right, bequeathed, donated, or purchased, to receive fixed or certain periodical payments,… …   Ballentine's law dictionary

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