Investment in the Contract
- The total principal amount that an individual has contributed toward an annuity at a given time. An investment in the contract can be made through a single lump-sum payment or series of payments over a number of months or years.
annuity premiums, annuity payment options, annuity payments
Related Terms and Acronyms
- Accumulation Period (AP) — Acronym, Important,
- The period where an investor continues to put money into his or her investment(s).
- 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.
- Annuity Consideration — Definition,
- The payment(s) made by an individual in order to accumulate value in an annuity.
- Annuity Contract — Definition,
- A contract that outlines each party's responsibilities as they relate to an annuity.
- Contract — Definition,
- An agreement between two or more parties that can be enforced by law.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Immediate Payment Annuity — Definition,
- An annuity where payments to the annuitant start immediately after the annuity has been set up.
- Investment — Definition,
- Something you put your money into in order to make money.
- Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.