Annuities

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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

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).

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in classic literature ?
"I believe you are right, my love; it will be better that there should by no annuity in the case; whatever I may give them occasionally will be of far greater assistance than a yearly allowance, because they would only enlarge their style of living if they felt sure of a larger income, and would not be sixpence the richer for it at the end of the year.
To explain the problematic existence of the chevalier, the historian, whom Truth, that cruel wanton, grasps by the throat, is compelled to say that after the "glorious" sad days of July, Alencon discovered that the chevalier's nightly winnings amounted to about one hundred and fifty francs every three months; and that the clever old nobleman had had the pluck to send to himself his annuity in order not to appear in the eyes of a community, which loves the main chance, to be entirely without resources.
Besides his fiction of an annuity, about which no one at the present time knew anything, the chevalier really had, therefore, a bona fide income of a thousand francs.
Rawdon the next week, and had lent Rawdon Crawley six hundred pounds upon annuity before six months were over.
He had reserved from his annuity his family papers, his library, composed of five thousand volumes, and his famous breviary.
Insurance Department Announces Restitution for Consumers in Annuity Scam
Article 2021 gives us a definition of annuity, to wit: 'The aleatory contract of life annuity binds the debtor to pay an annual pension or income during the life of one or more determinate persons in consideration of a capital consisting of money or other property, whose ownership is transferred to him at once with the burden of the income.'
CHARLOTTE, N.C: Brighthouse Financial announced the launch of two new fixed annuity products: the BrighthouseSM Fixed Rate Annuity and BrighthouseSM Fixed Rate Annuity MVA through Brighthouse Life Insurance Company.
Used properly, an annuity can serve valuable purposes in personal financial planning.
Results for the third quarter were worse than results for the second quarter: In the second quarter, annuity sales dropped 8%.
In 2016, total fixed annuity sales hit a record-breaking $117.4 billion, 14 percent higher than 2015 levels and nearly $7 billion higher than 2009 (when sales were last at their highest), according to LIMRA Secure Retirement Institute's Fourth Quarter U.S.
This happens when deferred annuity holders seeking higher-yielding alternatives withdraw funds prematurely (often during periods of increasing interest rates), and force companies to pay these surrenders by liquidating investments that may be in an unrealized loss position.