- An annuity that guarantees a steady stream of income until the annuitant's death. Also known as a "lifetime payout annuity" or "whole life annuity."
whole life annuity, lifetime payout annuity
Related Terms and Acronyms
- Cash Refund Annuity — Definition,
- An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
- Fixed Annuity — Definition,
- An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
- Inflation-Protected Annuity — Definition,
- An annuity that guarantees a return equal to or above inflation.
- Joint and Survivor Annuity — Definition,
- An annuity with multiple annuitants (usually spouses) that makes payments as long as either of the annuitants are alive.
- Life Expectancy Method — Definition,
- A method of calculating the appropriate size of payments in an annuity's income phase by estimating the annuitant's life expectancy.
- Life Insurance — Definition, Very Important,
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- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
- Maturity Guarantee — Definition,
- A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
- Private Annuity — Definition,
- An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
- Single Premium Deferred Annuity (SPDA) — Acronym,
- A deferred annuity funded with a single payment.
- Straight Life Annuity — Definition,
- An annuity that stops all payments upon the annuitant's death.
- Substandard Health Annuity — Definition,
- An annuity with increased income payments for people with shorter life expectancies due to medical conditions.