What Does Annuity Definition Stand For?
Defining annuities may seem like a difficult subject. However it is exactly the opposite. When people look for an annuity definition, they often end up confusing themselves about the subject. The confusion lies in the fact that annuities are sold by insurance companies but are nowhere close to insurance policies that the same companies sell. Annuities are a different product with characteristics that are also different. Insurance policies are sold with the intention of providing monetary relief to a beneficiary after the death of the buyer. An annuity is a contract, which is sold by an insurance company to an investor, promising to pay them a monthly, quarterly or annual income from the date of maturity of the investment. In most cases this date is usually set to coincide with the retirement of the investor. Let us now look at further definitions of the term annuity. The definition of an annuity usually differs in line with the type of investment that has been made. For people investin
