What is the Definition of Immediate Annuity?

What is the Definition of Immediate Annuity?

A product purchased with a lump sum, usually at the time retirement begins or afterwards. Payments begin within about a year. Immediate annuities can be either fixed or variable.

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 Annuity?

What is the Definition of Immediate Annuity?

What is the Definition of Immediate Annuity?

You can find random definition and meaning of insurance terms below:

Meaning of Junk Bonds in Insurance Terms

Corporate bonds with credit ratings of BB or less. They pay a higher yield than investment grade bonds because issuers have a higher perceived risk of default. Such bonds involve market risk that could force investors, including insurers, to sell the bonds when their value is low. Most states place limits on insurers’ investments in these bonds. In general, because property/ casualty insurers can be called upon to provide huge sums of money immediately after a disaster, their investments must be liquid. Less than 2 percent are in real estate and a similarly small percent are in junk bonds.

Meaning of Joint And Survivor Annuity in Insurance Terms

An annuity with two annuitants, usually spouses. Payments continue until the death of the longest living of the two.

Meaning of Key Person Insurance in Insurance Terms

Insurance on the life or health of a key individual whose services are essential to the continuing success of a business and whose death or disability could cause the firm a substantial financial loss.

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