- The payment or payments made to purchase an annuity. An annuity consideration can be made as a single lump-sum payment or as a number of smaller payments. Also known as a "premium."
annuity payment options, annuity payments, annuity premiums
Related Terms and Acronyms
- Annuitization — Definition,
- The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Commutation — Definition,
- An option given to the beneficiaries of annuities and life insurance policies that allows them to modify the frequency and size of benefit payments.
- Future Value of an Annuity (FVA) — Acronym,
- The value of an annuity at some future date.
- Instalment — Definition,
- The regular periodic payment that a borrower agrees to make the lender.
- Investment in the Contract — Definition,
- The principal that has been contributed to an annuity.
- Lump Sum Payment — Definition,
- One-time single-sum payment or payout.
- An extra payment made to reduce a loan.
- Premium — Definition,
- A payment made to an insurance company for insurance coverage.
- Present Value Interest Factor of Annuity (PVIFA) — Acronym,
- A method used to find an annuity's present value.
- Single Premium Deferred Annuity (SPDA) — Acronym,
- A deferred annuity funded with a single payment.