What is the definition of Life Annuity?
A Life Annuity is a kind of annuity contract that promises continual income payments while the annuitant is alive.
The annuitant is required to make regular payments during the savings phase (for regular-payment annuities) or a large one-time payment (single-payment annuity). When the annuity date arrives, the annuity starts to make the income payments to the annuitant.
There are various kinds of annuities. A straight life annuity keeps on providing income payments while the annuitant is still alive. A Life Annuity with Period Certain pays for a guaranteed period or until the annuitant dies, whichever comes last.
A life annuity is more or less longevity insurance, where the annuitant makes the most of his investment if he lives longer.
| Not a bit | Very useful |
- Life Income with Refund Annuity
- Life Insurance
- Limits
- Line
- Liquidation
- Liquidity
- Liquor Liability
- Lloyds
- Lloyd’s of London
- Long-Term Care Insurance
- Life Annuity with Period Certain
- Liability Insurance
- Level Premium Policies
- Law of Large Numbers
- Lapse
- Laddering
- Junk Bonds
- Joint Underwriting Association (JUA)
- Joint and Survivor Annuity
- Irrevocable Beneficiary