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 ?
Moreover, because the benefit is provided as a guaranteed lifetime annuity, retired employees can count on the benefit over their lifetimes.
The main advantage of a lifetime annuity is that the income you will receive is guaranteed for life.
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 deduction is made from everyone's fund while they are alive and this builds a contingency fund that can be used to pay income for those lucky enough to live a long time.
Mark Mackey, president and chief executive officer of the National Association for Variable Annuities, said he hopes that brokers, agents and financial planners will read the report and better appreciate the real value that lifetime annuity payments can provide.
They also want a lifetime annuity to supplement their annual cash consumption needs.
The trust sells the stock, invests the proceeds in securities with a higher return, and pays you and your spouse a lifetime annuity. If your goal includes transferring assets to your children, you can use some of the extra income and tax deductions generated by the donation to pay premiums on a joint and survivor life insurance policy on yourself and your spouse.
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.
This follows an announcement on 27 March that confirmed that the government would take action to ensure that people do not lose their right to a tax-free lump sum if they would rather use the new flexibility this year or next, instead of buying a lifetime annuity.