Annuity
/ˈæn.ju.ɪ.ti/
Definitions
- (n.) A fixed sum of money paid to someone each year, typically for the rest of their life, under a legal contract such as a settlement or insurance agreement.
The retired employee received an annuity as part of his pension plan.
- (n.) A financial product that provides a stream of payments to an individual, usually used as income in retirement, regulated under insurance and contract law.
She purchased an annuity to ensure steady income after retirement.
Forms
- annuity
- annuities
Related terms
See also
Commentary
Annuities are typically structured through contracts that guarantee periodic payments; distinguishing between types (fixed, variable) is important in legal and financial contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.