annuity due

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Annuity due

An annuity with n payments, where the first payment is made at time t = 0, and the last payment is made at time t = n - 1.

Annuity Due

A payment that must be made at the beginning, rather than at the end, of a period. For example, an annuity due may require payment at the beginning of the month instead of at the end. Many lease agreements have annuity due payments, while credit cards, for example, do not.

annuity due

An annuity in which payments are made at the beginning of each period. Compare ordinary annuity.

annuity due

See advance payment annuity.
References in periodicals archive ?
During the rulemaking, the DOL concluded that consumers needed protections from conflicted advice with respect to fixed indexed and variable annuities due to their complexity and risk.
Most people have heard about stock market indexed annuities due to advertisements by insurance companies.
Moneyfacts says that in the first few months after the change, insurers became more conservative about their pricing of annuities due to uncertainty over the exact impact the new rules would have.
There has definitely been an increase in the need for fixed annuities due to clients wanting income riders, safety and guarantees of principal.
Also in 2010, Centurion Life stopped issuing single premium deferred annuities due to spread compression issues.
Similar to the payment calculations, the calculations to solve for the number of periods (n) for annuities depends on whether n is calculated in reference to a present value or a future value and whether the annuities are ordinary annuities or annuities due.
The text provides inadequate coverage of key managerial accounting topics such as time value of money concepts, including no discussion on future value and annuities due.
The site also includes explanations of certain life insurance products as well as annuities and LTC products; a crucial component for customers when purchasing annuities due to the rampant misconceptions regarding the vehicles.
Glyn explains that health issues could also arise with increasing age, and many people now qualify for 'enhanced' annuities due to their state of health.
The formulas for computing the future value of inflation-adjusted annuities due and ordinary annuities can be derived by similar manipulations and adjustments of equations FV2 and FV4 (from Chapter 32).
The expectations of lower growth in annuities due to the end of regulator's special incentives for early retirement at the end of 2011 would change Pacifico Vida's gross premium mix and limit short-term premium growth.
The statutory capital and surplus of AEL's primary operating subsidiary was $898 million at September 30, 2008 compared to $991 million at December 31, 2007 reflecting the statutory accounting impacts of year-to-date net realized losses on invested assets and accelerated recognition of expense associated with options purchased to fund index credits on index annuities due to the decline in fair value of such options.