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Annuity

• Fixed number of identical cash flows that start one period from today. Typically, annuity products are used to provide income in retirement.

• Is an insurance product which comes in two basic forms: fixed and variable. The fixed version can make a lump sum or periodic lifetime payments to the annuitant. The variable version has a separate account attached to the annuity contract. This type of contract is considered a security because it is dependent on equities and its total value is subject to fluctuate due to market risk. There are many annuity varieties. Some are: Annuity Certain, Annuity Due, Deferred Annuity, Fixed Annuity, Life Annuity, Ordinary Annuity, Perpetuity, and Variable Annuity. Also, see Interest Impact on Present Value of Ordinary Annuity of 1 Per Period.

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

• A finite stream of equal and periodic (regular) cash flows. These cash flows can be inflows of returns earned on investments or outflows of funds invested to earn future returns.

• (1) A series of periodic payments. (2) A contract under which an insurance company promises to make a series of regular payments to a named individual for life.

 
 

Follow this link for all the terms related to annuity.

 
 Embedded terms in definition
 Annuitant
Annuity certain
Annuity due
Cash flow
Cash
Contract
Deferred annuity
Dependent
Fixed annuity
Future
Income
Interest
Investments
Its
Life annuity
Market risk
Market
Ordinary annuity
Perpetuity
Present value
Risk
Security
Separate account
Series
Subject
Time
Type
Variable annuity
Variable
 
 Referenced Terms
 1035 exchange: Is a transaction that permits the exchange of a life insurance contract for another insurance contract or Annuity. It can be with the same or different company. It is important to research the specifics because some of the product exchanges only work one way. For example, an annuity can not be exchanged for a life policy.

 403 b plan: A type of retirement savings plan, used mainly by non-profit employers. Also known as a tax- deferred Annuity.A tax-deferred Annuity retirement plan available to employees of public schools and certain nonprofit organizations.

 403 b plan: A type of retirement savings plan, used mainly by non-profit employers. Also known as a tax- deferred Annuity.A tax-deferred Annuity retirement plan available to employees of public schools and certain nonprofit organizations.

 Accumulation: Refers to buying often coincident with market bottoms or consolidations. It also refers to purchases by insiders, control people, or major investors.The value of an individual s savings in an investment fund or deferred Annuity until withdrawals or income payments begin.

 Amortize: In portfolio accounting, periodic charges made against interest income on premium bonds in anticipation of receipt of the call price at call or of par value at maturity. In the context of a loan, amortization means the Annuity payments that pay off the loan in full.

 
 Related Terms
 

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