Annuity Consideration

The money that an individual pays to an insurance company in exchange for a financial instrument that provides a stream of payments for a given length of time. An annuity consideration may be made as a lump sum or a as a series of gradual payments.

Also referred to as a "premium".

The payments provided by the annuity can be distributed monthly, quarterly, semiannually or annually. Payment amounts are based on a number of factors, including the amount of the annuity consideration, the age at which the annuitant begins receiving payments, the annuitant's life expectancy, the annuity's anticipated investment returns and whether the annuity is fixed or variable.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Annuity (European financial arrangements) — An annuity can be defined as a contract which provides an income stream in return for an initial payment.Immediate annuityAn immediate annuity is an annuity for which the income stream begins at a time after the initial payment which is less than …   Wikipedia

  • annuity — /euh nooh i tee, euh nyooh /, n., pl. annuities. 1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient s life, in consideration of a stipulated premium paid either in prior installment… …   Universalium

  • annuity — In the older sense of the term, a yearly payment of a certain sum of money granted to another in fee, for life, or for years. In the modern sense, a right, bequeathed, donated, or purchased, to receive fixed or certain periodical payments,… …   Ballentine's law dictionary

  • annuity policy — A contract of an insurance company for the payment of an annuity beginning at a certain age of the annuitant stated in the policy, in consideration of a single premium or annual premiums payable by the annuitant. 4 Am J2d Annui § 1 …   Ballentine's law dictionary

  • annuity — an•nu•i•ty [[t]əˈnu ɪ ti, əˈnyu [/t]] n. pl. ties 1) bus a specified income payable at stated intervals for a fixed or contingent period, often for the recipient s life, as in consideration of a premium paid 2) bus the right to receive such an… …   From formal English to slang

  • annuity — /əˈnjuəti / (say uh nyoohuhtee) noun (plural annuities) 1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient s life, in consideration of a stipulated premium paid either in prior instalment …   Australian English dictionary

  • Charitable Gift Annuity — A Charitable Gift Annuity is a gift vehicle that falls in the category of Planned Giving. It involves a contract between a donor and a charity, whereby the donor transfers cash or property to the charity in exchange for a partial tax deduction… …   Wikipedia

  • Hybrid Annuity — An insurance contract that allows buyers to allocate funds to both fixed and variable annuity components. Most hybrid annuities allow the investor to choose the amount of assets to allocate to the more conservative, fixed return investments,… …   Investment dictionary

  • Life annuity — Life Life (l[imac]f), n.; pl. {Lives} (l[imac]vz). [AS. l[imac]f; akin to D. lijf body, G. leib body, MHG. l[imac]p life, body, OHG. l[imac]b life, Icel. l[imac]f, life, body, Sw. lif, Dan. liv, and E. live, v. [root]119. See {Live}, and cf.… …   The Collaborative International Dictionary of English

  • insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.