life annuity

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Life annuity

An annuity that pays a fixed amount for the lifetime of the annuitant.

Life Annuity

A fixed or variable annuity that pays a certain monthly or (rarely) annual sum for life of the annuitant. Generally speaking, an annuitant buys a life annuity and makes installment payments for it throughout his/her working life. Following retirement, the annuitant begins to receive the benefit, the amount of which may or may not be fixed in the annuity contract. A life annuity is designed to provide a stable income for the annuitant in retirement. See also: Income annuity, Pension, IRA, 401(k).

life annuity

A stream of payments intended to continue during the annuitant's lifetime and to cease automatically at the annuitant's death.
References in periodicals archive ?
Higher stock market returns tend to dampen demand for life annuities, suggesting that some PERS retirees may overvalue the projected investment returns a lump sum will generate.
To boost annuitization rates among retirees, the authors recommend that plan sponsors reduce search costs by incorporating life annuities into defined contribution retirement accounts as well as presenting participants a number of lifetime annuity payment options.
Life annuities are a solution to longevity risk, but they are surprisingly unpopular," said Samuelson Award judge James Choi, associate professor of finance at Yale University, in a statement.
CANNEX compiles ongoing quotes from, what I believe to be, most insurance companies in Canada that market and sell life annuities.
65], other than that it represents one of the most popular life annuities purchased (and quoted) in practice.

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