life annuity

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Related to Lifetime Annuity: immediate annuity, Life annuity

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 ?
The benefit is payable as a lifetime annuity, but a member can select optional forms of payment, including a lump-sum distribution with reduced annuity.
The lifetime annuity is, as the name suggests, a product which undertakes to take your pension pot and to pay you a regular income until you die.
If the bill passes, a taxpayer could receive up to $40,000 per year in lifetime annuity income and keep half of that total out of taxable income.
This lifetime guarantee is not that different from a standard lifetime annuity.
A private foundation would result in a full charitable deduction based on the value of the stock, whereas a CRT would result in a partial charitable deduction plus a lifetime annuity.
The size of a lump-sum payment depends on what interest-rate assumption the plan uses, so that the payout and its projected lifetime earnings equal what the retiree would have received in lifetime annuity payments.
Under the Charitable Remainder Trust program, the donor and the donor's spouse receive a lifetime annuity from the trust.
Demand for life annuities does not correspond to the actuarial value of the lifetime annuity payments, which implies that retirees lack the financial knowledge to compare life annuities to lump sums.
In fact, based on a sizable sample of 32,000 retirees between 1990 and 2002, 85 percent of PERS retirees opted to receive all of their pension benefits in the form of lifetime annuity payments.
Essentially, a deferred lifetime annuity pays a guaranteed income stream for the rest of the holder s life no matter how long they live, and it can also be indexed for inflation, Boal says.