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.
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