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 ?
Clearly this is not guaranteed and indeed rates may stay the same or fall but once a retiree locks in to a lifetime annuity they are stuck with that rate for life with no chance of gaining from interest rises in the future.
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.
The lifetime annuity payments provided by Guardian SecureFuture Income Annuity(SM) are calculated based on certain characteristics of the annuitant, such as age at the time of any premium payment and gender; the Lifetime Annuity Payment Option; the amount of time before the annuity payments begin; the frequency of the annuity payments; and the purchase rates in effect at the time of initial premium or any additional premiums made thereafter.
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.
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.
This will detail the level of income you can look to receive in the form of a lifetime annuity if you decide to take it with them.
Under the Timothy Cole Compensation Act, inmates who are freed from jail after being found innocent of the crime for which they were convicted are entitled to $80,000 per year of wrongful imprisonment plus a lifetime annuity.
You will be able to take 25% of your savings as a tax-free lump sum and then turn the remainder into a lifetime annuity.
Traditionally the option for retirees was to convert their pension fund to a guaranteed lifetime annuity, or for those with a large fund to follow an "income drawdown" strategy, whilst leaving the fund invested.