Annuities


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Annuities

 

a form of state loan by which the creditor periodically receives a certain income (rente), established on the basis of a gradual liquidation of the capital sum and interest on the debt. There are fixed-term and life annuities. In the case of the former, the payment of income is limited in time (usually the period is quite long) and may be transferred to another individual. In the case of lifetime annuities, income may be received only by the immediate creditor, and the payment of rente ceases with the death of the holder. The price of annuities derives from the market level of loan interest rates. The size of the annual payment on lifetime annuities is determined in accordance with the age of the creditor and statistical data on the mortality of the population. In Britain and France annuities were issued in the early 19th century in order to speed up the liquidation of termless loans, the latter being exchanged for fixed-term or lifetime loans. In non-European countries annuities spread in the 17th and 18th centuries: in the USA they were issued during the consolidation of the state debt, which arose during the War for Independence (1775–83).

References in periodicals archive ?
The Insurance Department reached an agreement with the two insurers for which the Gilbergs sold the inappropriate annuities to make restitution to consumers.
Annuities act as a safety net, usually for those in their senior years, by providing a guaranteed stream of income for life.
Some annuities start distributing cash right away, as described, but others are deferred.
Its third-quarter annuity sales total includes sales of both fixed annuities and variable annuities.
In the fourth quarter, sales of fixed-rate deferred annuities, (Book Value and MVA) fell 9 percent, to $7.7 billion.
Group Annuities: These differ slightly from individual annuities in that the payout is dependent upon the life expectancy of all the members of the group rather than on the individual.
The Voya Quest series of annuities provides individuals the flexibility to select from a five-, seven- or 10-year contract surrender schedule.
In order to cover nursing home expenses during these relatively short periods, they purchased single premium immediate annuities.
I know most of my colleagues would agree that more Americans need to know about annuities. As a result of the many questions fielded by Wink, Inc.
Uncertainty over the scope and duration of this duty has made some sponsors reluctant to offer distribution annuities, but in Field Assistance Bulletin ("FAB") 2015-02, issued this past July, the Department of Labor (DOL) has attempted to clarify certain issues in order to eliminate these qualms.
Annuities are special kinds of insurance contracts that have been used in the past primarily to create retirement income for individuals.
The insurer now provides fixed index annuities, fixed annuities and a fixed annuity with long-term care benefits via multiple distribution networks, as well as variable annuities sold exclusively through broker-dealers.