Business / Taxes / Immediate Annuity: You buy an immediate annuity contract with a lump-sum purchase. You begin receiving income from the annuity either right away or within 13 months. A fixed immediate annuity guarantees the amount of income you'll receive in each payment, based on the claims paying ability of the insurance company selling the contract. A variable immediate annuity pays income based on the performance of the annuity funds, or subaccounts, you select from those available through the contract. Immediate annuities appeal to people who want to convert a sum of money to a source of regular income, either for themselves or for another person. One way they're frequently used is as a source of retirement income.
Immediate Adjective Synonyms: instantaneous, instant, abrupt, sudden, swift, spontaneous, instinctive, triggered, unhesitating, unthinking, automatic, reflex, knee-jerk
Business / Finance / Hybrid Annuity: A package of two or more different kinds of risk management instruments that are usually interactive. MORE
Business / Taxes / Deferred Annuity: A deferred annuity contract allows you to accumulate tax-deferred earnings during the term of the contract and sometimes add assets to your contract over time. In contrast, an immediate annuity starts MORE