Annuity

by lakemen » Sat Jul 08, 2006 04:57 am
Posts: 1260
Joined: 18 May 2005

Annuity

A life insurance product that pays periodic income benefits for a specific period of time or over the course of the annuitant's lifetime. There are two basic types of annuities: deferred and immediate: Deferred annuities allow assets to grow tax deferred over time before being converted to payments to the annuitant. Immediate annuities allow payments to begin within about a year of purchase.

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