LIFETIME ANNUITY Meaning and
Definition
-
A lifetime annuity is a financial contract issued by an insurance company that guarantees a regular stream of income for an individual's lifetime. It is a type of annuity that provides payments to the annuitant (the individual who purchases the annuity) for as long as they live, without the risk of outliving their savings.
The annuitant pays a sum of money, known as the premium, to the insurance company in exchange for the promise of receiving a fixed income for the rest of their life. The amount of income received depends on various factors such as the annuitant's age, gender, and prevailing interest rates at the time of purchase. The income payments are usually made on a monthly or annual basis and cannot be changed once the annuity contract is finalized.
Lifetime annuities are often seen as a form of retirement income, providing individuals with a stable and predictable source of funds throughout their retirement years. They serve as a tool for individuals to mitigate the risk of outliving their retirement savings, thereby ensuring financial security.
While lifetime annuities offer the advantage of guaranteed income for life, the trade-off is the lack of flexibility. Once the annuity contract is established, it is typically irreversible, and the initial premium cannot be accessed or withdrawn. However, some annuities offer additional features such as inflation adjustments or a survivorship option, which allows the annuity payments to continue to a spouse or beneficiary after the annuitant's death.
Common Misspellings for LIFETIME ANNUITY
- kifetime annuity
- pifetime annuity
- oifetime annuity
- lufetime annuity
- ljfetime annuity
- lkfetime annuity
- lofetime annuity
- l9fetime annuity
- l8fetime annuity
- lidetime annuity
- licetime annuity
- livetime annuity
- ligetime annuity
- litetime annuity
- liretime annuity
- lifwtime annuity
- lifstime annuity
- lifdtime annuity
- lifrtime annuity
- lif4time annuity
Etymology of LIFETIME ANNUITY
The etymology of the word "lifetime annuity" can be broken down as follows:
1. Lifetime: The word "lifetime" is a compound word composed of "life" and "time". "Life" comes from the Old English word "līf" and is related to the Dutch word "lijf" and German word "Leib", all of which refer to the state or period of being alive. "Time" comes from the Old English word "tīma" and is related to the Dutch word "tijd" and German word "Zeit", all of which denote a period or duration.
2. Annuity: The word "annuity" derives from the Latin word "annuus", which means "yearly" or "annual". It is related to "annus" (year) and "annuus" (annually) in Latin.
