What is the Definition of Annuity?
A life insurance product that pays periodic income benefits for a specific period of time or over the course of the annuitant’s lifetime. There are two basic types of annuities: deferred and immediate. Deferred annuities allow assets to grow tax-deferred over time before being converted to payments to the annuitant. Immediate annuities allow payments to begin within about a year of purchase.
Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/
Label: Insurance
Theme: Dictionary of Insurance Terms
Other Questions: What is the definition of Insurance?
What is the Definition of Annuity?
Check out other definition of insurance terms below:
What is the Meaning of NONFORFEITURE OPTIONS In Insurance Terms?
The various ways in which a contract owner may apply the cash surrender value of an insurance or an annuity contract if the contract lapses. In the United States, the typical nonforfeiture options for life insurance are the cash payment option, the extended term insurance option and the reduced paid-up insurance option. (See Cash payment option; Cash surrender value; Extended term insurance option; Reduced paid-up insurance option)
What is the Meaning of NONFORFEITURE VALUES In Insurance Terms?
The benefits, as printed in a life insurance policy, that the insurance guarantees to the insured if the insured stops paying premiums.
What is the Meaning of NOTICE OF LOSS In Insurance Terms?
A written notice required by insurance companies immediately after an accident or other loss. Part of the standard provisions defining a policyholder’s responsibilities after a loss.
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