YOU ASK:
What is the definition of Investment Annuity?
WE ANSWER:
An Investment Annuity is an annuity contract that is designed to help people save up for a future event, such as their retirement. An annuity pays for a stream of regular income or a lump sum once the annuity matures.
Investment annuities are usually deferred annuities. This annuity contract involves regular deposit payments to the plan, but withdrawals are highly discouraged, until the annuity reaches its maturity. The annuitant can place his annuity premiums during the savings phase and this continues until the annuity reaches its payment phase. This is the point where the annuitant or his beneficiaries start receiving the income payments and the deposits stop.
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