A type of annuity contract that guarantees periodic income payments throughout the lifetime of a named individual — the annuitant. If a life annuity provides no further benefits after the death of the annuitant, the annuity is known as a straight life annuity. However, some life annuities provide that income payments will be paid either for the life of the annuitant or for a guaranteed period — life income with period certain — or at least until a guaranteed amount has been paid — life income with refund annuity. See also life annuity with period certain, life income with refund annuity, and straight life annuity.
An annuity that provides payments for the life of the annuitant with no beneficiary payments. Payments stop at the death of the annuitant and the money reverts to the insurer. Typically this type of annuity pays the largest monthly benefit per dollar invested. Also called a “life-only” annuity.
a financial product that you buy from a life insurer, who in turn pays you a regular income for a fixed period or for the rest of your life Americo Financial Life and Annuity Insurance Company Provider of life insurance and annuity products
A life annuity refers to the pension, which you have to buy with the returns of your retirement annuity. The working of this is simpler than it looks. Your retirement annuity is the savings vehicle for retirement. When you reach that age, you draw the money and buy a pension from a life assurer, which is then paid out monthly for the rest of your life. Because of the tax benefits you have during the savings phase you are obliged to buy a pension - the life annuity. There are a number of different options when buying a life annuity that can be structured to your specific needs.
An annuity that makes regular (e.g., monthly, quarterly, etc.) income payments for the life of a person (the annuitant). The annuitant cannot outlive the payments. Upon his/her death, however, all income payments cease and there are no beneficiary benefits.
A life-contingent annuity provides an individual with guaranteed income payments for his or her life or, in some cases, for his or her life and that of another person, such as a spouse. This means that no matter how long an individual lives, annuity payments will continue to be paid.
An annuity which pays for the lifetime of the person receiving payments. There is normally a period during which payments will be made regardless of whether the recipient is alive or not. This is called a guarantee period, and it ensures that payments will continue for some minimum length of time.
The life annuity (also known as a single-payment annuity) is a financial instrument that allows for a seller (issuer), typically a financial institution such as a life insurance company, to provide a series of future payments to a buyer (annuitant) for a known sum with a net present value; the payment stream has an unknown duration based principally upon the life expectancy of the annuitant. Generally, such an instrument stops payment at the death of the annuitant. However, it is possible to structure such a contract so that the payments stop upon the death of the second of two annuitants (i.e., a joint and survivor annuity), sometimes with a reduction in the amount of the payment going forward.