What Does Annuity Mean In Insurance?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    An annuity is a contract between you and your life insurance company in which the insurance company provides payments to you at regular intervals for the rest of your life (or for a set period of time, or in a lump sum), in exchange for you putting in a premium (either in a lump sum or on a payment plan). It is a form of retirement savings.
    Answered on August 15, 2014
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are two problems facing most people.  Either they die too soon or live too long.  Insurance for dying too soon is called life insurance.  Insurance for living too long is called an annuity.  They use the same data to determine the prices and benefits of policies but resolve two different issues. 
    Answered on August 15, 2014
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