Immediate Payment Annuity

An annuity contract that is purchased with one payment and has a specified payment plan which starts immediately.

This type of annuity is sometimes used when a person turns 65 (or retirement age).


Investment dictionary. . 2012.

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  • immediate annuity — noun : an annuity which is purchased with a single premium and on which the initial payment is made to the annuitant within the first year * * * an annuity bought with a single premium, with payments to the annuitant to begin at the end of one… …   Useful english dictionary

  • immediate annuity — an annuity bought with a single premium, with payments to the annuitant to begin at the end of one payment period, as a month or a year. Cf. deferred annuity. * * * …   Universalium

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