Related Terms
Series of payments at fixed intervals, guaranteed for a fixed number of years or the lifetime of one or more individuals. Similar to a pension, the money is paid out of an investment contract under which the annuitant(s) deposit certain sums (in a lump sum or in installments) with an annuity guarantor (usually a government agency or an insurance firm). The amount paid back includes principal and interest, either or both of which (depending on the local regulations) may be tax exempt. An annuity is not an insurance policy but a tax-shelter.

Use 'annuity' in a Sentence

Mrs. Bockris felt extremely frightened about her financial future as her lawyer explained that with the thirty years up, she would no longer receive her annuity payment from her late husband's company.
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When Max won the lottery, he opted not to get annuity payments because he wanted to have as much money as possible all at once.
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If you choose to work for our company, after five years you will receive a annual annuity of $10,0000 if your work is deemed to be adequate.
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