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 ?
The authors show that these changes produced negative effects on the rates of return earned on some retirement benefits and lifetime annuities.
Andrew Boal, managing director for Towers Watson in Australia says the federal government announcement that it will encourage the take-up of deferred lifetime annuities (DLAs) represents a watershed moment for the Australian superannuation industry.
This is particularly important at a time when the income paid by lifetime annuities is at its lowest for many decades and once bought, there is no escape.
Variable lifetime annuities* provide a lifetime income, like fixed lifetime annuities.
Specifically, they strongly support proposals that would provide a tax exclusion for the income from lifetime annuities.
This bill would help alleviate the vulnerability cited in this report by encouraging Americans to use lifetime annuities as a way to secure a steady stream of income throughout retirement.
Outside Social Security and pensions, lifetime annuities are the only vehicles that literally provide a "paycheck for life" and can help women ensure a regular source of income to augment Social Security and other savings they may have," said Karen Kerrigan, president of Women Entreprenuers, Inc.
The study recommends that policymakers enact policies to encourage women to plan for long-term economic stability by utilizing retirement vehicles like lifetime annuities, which provide a steady stream of income for life.
381), which would help all Americans, particularly women, maintain economic security throughout their golden years by encouraging the use of lifetime annuities as a way to ensure a steady stream of income in retirement.
The Flexible Retirement Security Act of 2005 would help individuals manage their retirement savings by offering them incentives to use lifetime annuities to secure a guaranteed stream of income throughout their golden years.
Lifetime Savings through Annuities: The Flexible Retirement Savings Act creates a tax incentive for people to use lifetime annuities.
Lifetime annuities are specifically helpful to farmers because many have real, tangible farm assets -- such as farm land, machinery and livestock -- and non-farm assets such as stocks, bonds, real estate and cash -- that if managed properly can essentially provide a "paycheck" for life.