annuity


annuity
/an(y)uwatiy/ A right to receive fixed, periodic payments, either for life or for a term of years. Moore v. O'Cheskey, App., 87 N.M. 66, 529 P.2d 292, 293.
A fixed sum payable to a person at specified intervals for a specific period of time or for life. Payments represent a partial return of capital and a return (interest) on the capital investment. Therefore, an exclusion ratio must generally be used to compute the amount of nontaxable income.
Special rules apply to employee retirement plan annuities. The payment or receipt of a series of equal amounts of money per period for a specified amount of time. In an ordinary annuity, payments are made at the end of each period; in an annuity due, payments are made at the beginning
@ annuity bond
A bond without a maturity date, that is, perpetually paying interest
See also annuity.
@ annuity certain
Payable for specified period; no matter the time of death of the annuitant
See also annuity.
@ cash refund annuity
Policy which provides for the lump sum payment at the death of the annuitant of the difference between the total received and the price paid.
See also annuity.
@ contingent annuity
Funded annuity with payments to commence on the happening of an uncertain event; e.g. death of named person other than annuitant. An annuity whose number of payments depends upon the outcome of an event whose timing is uncertain at the time the annuity is set up.
See also annuity.
@ deferred annuity
Payments begin at some specified future date provided the beneficiary is alive at such date.
See also annuity.
@ fixed annuity
Annuity that guarantees fixed payments, either for life or for a specified period, to annuitant.
See also annuity.
@ group annuity contract
A contract to make periodic payments to a member of a group covered by such contract. The usual type is a pension plan providing annuities upon retirement for individual employees under a master contract.
See also annuity.
@ joint and survivorship annuity
An annuity which is payable to the named annuitants during the period of their joint lives, with the annuity to continue to the survivor when the first annuitant dies.
See also annuity.
@ joint annuity
An annuity which is paid to the two named persons until the first one dies, at which time the annuity ceases.
See also annuity.
@ life annuity
Provides for payment of income to annuitant only during his lifetime; even though death is premature.
+ life annuity
An engagement to pay an income yearly during the life of some person; also the sum thus promised. An annuity, depending on the continuance of an assigned life or lives, is sometimes called a life annuity. Bodine v. Commissioner of Internal Revenue, C.C.A.3, 103 F.2d 982, 985.
See also annuity
@ private annuity
A contract for periodic payments to the annuitant from private as distinguished from public or life insurance company.
See also annuity.
@ refund annuity
Annuitant is assured a specified annual sum during his life, with the further assurance that in the event of his premature death there will be paid to his estate an additional amount which represents the difference between the purchase price and the amount paid out during annuitant's life.
See also annuity.
@ retirement annuity
Policy in which payments to annuitant commence at some future date; e.g. after retirement. If annuitant dies in interval or surrender is desired, an agreed upon amount is refunded to annuitant's estate.
+ retirement annuity
Type of pension plan paid through annuities to those who have retired. Plans differ as to the rights of survivors of the annuitant
See also annuity.
@ straight annuity
A contract usually by an insurance company to make periodic payments at monthly or yearly intervals; distinguishable from life insurance contract which looks to longevity, while annuity looks to transiency. Helvering v. LeGierse, 312 U.S. 531, 541, 61 S.Ct. 646, 85 L.Ed. 996.
Straight annuity contract calls for a fixed amount of payment as distinguished from the variable annuity.
See also annuity.
@ straight life annuity
See life annuity
- straight annuity.
See also annuity.
@ survivorship annuity
Type of annuity contract which provides for payments beyond the life of the annuitant, as for example, to a widow of the annuitant
See joint and survivorship annuity
See also annuity.
@ variable annuity
A contract calling for payments to the annuitant in varying amounts depending on the success of the investment policy of the insurance company; unlike a straight annuity which requires the payment of a fixed amount. Purpose of this type of annuity is to offset deflated value of dollar caused by inflation
+ variable annuity
An annuity whose periodic payments depend upon some uncertain outcome, such as stock market prices. An annuity contract in which the premiums or payments are invested in securities to keep pace with inflation. The payments, therefore, which the annuitant receives vary from time to time.
See also annuity
@ annuity policy
An insurance policy providing for monthly or periodic payments to insured to begin at fixed date and continue through insured's life. Hamilton v. Penn Mut. Life Ins. Co., 196 Miss. 345, 17 So.2d 278, 280
See also annuity.
@

Black's law dictionary. . 1990.

Look at other dictionaries:

  • annuity — an·nu·ity /ə nü ə tē, nyü / n pl ities [Medieval Latin annuitas, from Latin annuus yearly] 1: an amount payable at regular intervals (as yearly or quarterly) for a certain or uncertain period 2: the grant of or the right to receive an annuity his …   Law dictionary

  • Annuity — An*nu i*ty, n.; pl. {Annuities}. [LL. annuitas, fr. L. annus year: cf. F. annuit[ e].] A sum of money, payable yearly, to continue for a given number of years, for life, or forever; an annual allowance. [1913 Webster] …   The Collaborative International Dictionary of English

  • annuity — (n.) early 15c., a yearly allowance, grant payable in annual installments, from Anglo Fr., O.Fr. annuité (14c.) or directly from M.L. annuitatem (nom. annuitas), from L. annus year (see ANNUAL (Cf. annual) (adj.)). Meaning an investment that… …   Etymology dictionary

  • annuity — ► NOUN (pl. annuities) ▪ a fixed yearly allowance, especially one provided by a form of investment. ORIGIN Latin annuitas, from annuus yearly …   English terms dictionary

  • annuity — [ə no͞o′ə tē, ənyo͞o′ə tē] n. pl. annuities [ME & OFr annuite < ML annuitas < L annuus, annual < annus: see ANNUAL] 1. a payment of a fixed sum of money at regular intervals of time, esp. yearly 2. an investment yielding periodic… …   English World dictionary

  • annuity — /an(y)uwatiy/ A right to receive fixed, periodic payments, either for life or for a term of years. Moore v. O Cheskey, App., 87 N.M. 66, 529 P.2d 292, 293. A fixed sum payable to a person at specified intervals for a specific period of time or… …   Black's law dictionary

  • annuity — A regular periodic payment ( periodic payments) made by an insurance company to a policyholder for a specified period of time. Bloomberg Financial Dictionary An annuity is essentially a regular income for life and is usually purchased with your… …   Financial and business terms

  • Annuity — A regular periodic payment made by an insurance company to a policyholder for a specified period of time. The New York Times Financial Glossary * * * annuity an‧nu‧i‧ty [əˈnjuːti ǁ əˈnuː ] noun annuities PLURALFORM [countable] 1. INSURANCE the… …   Financial and business terms

  • annuity — /euh nooh i tee, euh nyooh /, n., pl. annuities. 1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient s life, in consideration of a stipulated premium paid either in prior installment… …   Universalium

  • annuity — In the older sense of the term, a yearly payment of a certain sum of money granted to another in fee, for life, or for years. In the modern sense, a right, bequeathed, donated, or purchased, to receive fixed or certain periodical payments,… …   Ballentine's law dictionary


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