Examples of annuity in a Sentence
Part of her retirement income will come from an annuity.
his grandfather's will provided him with an annuity of $5,000 a year to be used for school expenses
Recent Examples of annuity from the Web
The $758 million prize reflects the annuity option, paid over 29 years.
The winner can choose the final annuity value of $758.7 million or a cash prize of $480.5 million.
The jackpot can be paid in a lump sum or in annuity of 30 annual payments that increase over time.
Grand/jackpot prizes will be paid, at the choosing of the player, no later than 60 days after the player becomes entitled to the prize, with either an annuity or a cash payment.
Winners can take an annuity option, paid out over 29 years, or a smaller cash prize, given in a lump sum.
THE PRIZE The jackpot is listed as $700 million, but that refers to the annuity option, doled out in 30 payments over 29 years.
If a winner takes the $650 million, the sum will be paid out in annual annuities over 29 years.
Sentry and its subsidiaries sell property and casualty insurance, life insurance, annuities and retirement programs to businesses and individuals.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'annuity.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Did You Know?
This is a payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Under an annuity certain, a specified number of payments are made, after which the annuity stops. With a contingent annuity, each payment depends on the continuance of a given status; for example, a life annuity continues only as long as the recipient survives. Contingent annuities depend on shared risk. Everyone pays in until the annuity begins; some will live long enough to collect more than they have paid, while others will not live long enough to get back the money they invested.
Origin and Etymology of annuity
First Known Use: 15th centurySee Words from the same year
Financial Definition of ANNUITY
What It Is
An annuity is a financial contract written by an insurance company that provides for a series of guaranteed payments, either for a specific period of time or for the lifetime of one or more individuals.
How It Works
An annuity is similar to a life insurance product, but there are important differences between the two. Under the terms of a life insurance policy, the insurer will generally make a payment upon the death of the insured. Under the terms of an annuity, the company makes its payments during the lifetime of the individual. In addition, unless the annuity contract specifies a beneficiary, most annuity payments cease upon the death of the recipient.
There are several ways categorize types of annuities:
Immediate Annuities are usually purchased at retirement age, with benefits that begin immediately (within one year of purchase).
Non-Qualified Annuities are those contracts funded with after-tax dollars.
A Fixed Annuity is a personal retirement account in which the earnings are based on a fixed rate set by the insurance company. Fixed annuities are susceptible to inflation risk due to the fact that there is no adjustment provided for runaway inflation.
A Variable Annuity is a personal retirement account in which the investment grows tax-deferred until the investor is ready to withdraw the assets. Another important feature of the variable annuity is the family protection, or death benefit, that often comes along with such contracts. This guarantees that, should the investor die during the accumulation phase of the variable annuity, the account owner's beneficiary will receive at least the amount of the investor's contributions minus withdrawals or the current market value of the account.
Why It Matters
Unlike an IRA, there are no restrictions on the amount of the annual investment. In addition, variable annuities offer the potential for greater returns and the opportunity for the investor to make his/her own decisions regarding how the assets are invested.
Annuities are often obtained from a structured settlement of a personal injury lawsuit.
ANNUITY Defined for English Language Learners
Definition of annuity for English Language Learners
: a fixed amount of money that is paid to someone each year
: an insurance policy or an investment that pays someone a fixed amount of money each year
ANNUITY Defined for Kids
Definition of annuity for Students
legal Definition of annuity
- his will included annuities for several old friends
Origin and Etymology of annuity
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