See Also: Annuity due(finance)
Annuity(finance)
annuity(dictionary)
annuity(encyclopedia)
annuity(dictionary)
Annuity(money)
Annuity certain(money)
Annuity(law)
Annuity certain(finance)
Annuity due(money)

annuity (sh)




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 such as pension plans or life insurance depend on shared risk. Everyone pays in a fixed amount until the annuity begins; some will not live long enough to receive back all the money they have paid, while others will live long enough to collect more than they have paid.