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Insurance Definition: ANNUITY

By Compuquotes Team on March 27th, 2008

ANNUITY:

Definition:

  • 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.

Information provided by Insurance Information Institute

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