Related Words

Annuity: Originally, an annuity simply meant an annual payment. That’s why the retirement income you receive from a defined benefit plan each year, usually in monthly installments, is called a pensio . . . View Full Definition

Qualifying Annuity: An annuity allowable as investment for a qualified plan or trust.

Period-Certain Annuity: An annuity that provides guaranteed payments to an annuitant for a specified period of time.

Reverse-Annuity Mortgages (RAM): Bank loan for an amount equal to a percentage of the appraisal value of the home. The loan is then paid to the homeowner in the form of an annuity.

Annuity Certain: An annuity that pays a specific amount on a monthly basis for a set amount of time.

Immediate Annuity: You buy an immediate annuity contract with a lump-sum purchase. You begin receiving income from the annuity either right away or within 13 months. A fixed immediate annuity guarantees the am . . . View Full Definition

Income Annuity: An income annuity, sometimes called an immediate annuity, pays an annual income, usually in monthly installments. Your income is based on the annuity's price, your age (and your joint annuit . . . View Full Definition

Indexed Annuity: An indexed annuity is a deferred annuity whose return is tied to the performance of a particular equity market index. Your investment principal is usually protected against severe market dow . . . View Full Definition

Nonqualifying Annuity: An annuity that does not fall under an IRS-approved pension plan. Contributions are made with after-tax dollars, but earnings can accumulate tax-deferred until withdrawal.

Life Annuity: An annuity that pays a fixed amount for the lifetime of the annuitant.