What Does Annuitant Mean
Annuity is an agreement between an insurance company and the insured person that the insurer will pay a certain sum of money to the insured person in the future. Annuity is a kind of contract in which the insurer promises to pay a fixed amount of money at regular intervals. The first annuity was introduced by the government of England in 1694.
An annuity is usually paid for life or for a period of time. Annuity payments are usually made every month or quarterly. Annuity payments can be made as a lump sum at the beginning of the contract or on a regular basis throughout the contract. The payment is usually made by the insurer to the insured person on a periodic basis for a fixed term.
Annuity is also known as deferred annuity, deferred income, deferred retirement benefit, deferred pension, deferred income and deferred retirement benefits. It is also known as a “deferred” or “postponed” retirement benefit because the payments are not received until after the policy holder’s death.
Types of Annuities
There are many types of annuities that are available for the people who want to invest their money in a different way. You can choose from the following types of annuities:
Fixed annuity: In this type of annuity, the amount of money that will be paid to the annuitant is fixed. This type of annuity is suitable for those who want to plan their retirement.
Variable annuity: In this type of annuity, the amount of money that will be paid to the annuitant is variable. This type of annuity is suitable for those who want to invest their money in different ways.
Deferred annuity: In this type of annuity, the payments are made to the annuitant only after the death of the policy holder. It is a type of annuity where the payments are made after the death of the policy holder.
Conclusion:
An annuity is an agreement between the insurer and the insured person. The annuity can be fixed or variable. There are many types of annuities that you can choose from. You can choose from any of these types depending on your financial goals.
