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1 annuity
Fina contract in which a person pays a lump-sum premium to an insurance company and in return receives periodic payments, usually yearly, often beginning on retirement.There are several types of annuity. They vary both in the ways they accumulate funds and in the ways they disperse earnings. A fixed annuity guarantees fixed payments to the individual receiving it for the term of the contract, usually until death; a variable annuity offers no guarantee but has potential for a greater return, usually based on the performance of a stock or unit trust; a deferred annuity delays payments until the individual chooses to receive them; a hybrid annuity, also called a combination annuity, combines features of both the fixed and variable annuity.
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