life annuity

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Related to life annuity: Single 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 ?
Without a guarantee, unless you have opted for a joint life annuity, your income will stop upon your death, even if you die shortly after taking it.
If payments were made under a straight life annuity, payments cease upon the annuity holder's death; there is no remaining property interest, nothing is passed to survivors, and nothing is included in the annuity holder's estate.
In all cases, the life annuity is treated as a single payment.
While the stock- and bond-only strategy preserved the original deposit at the end of each period tested in 45% of the cases, the laddered life annuity strategy preserved the original deposit in 93% of the cases.
In this article, I develop a financial metric and index for tracking the time series behavior of life annuity payouts.
The concern regarding a shorter retirement (and early loss of principal) can be managed and even eliminated by selecting a life annuity with a "guarantee period", which assures the annuitant that payments will continue to the estate for a minimum number of years (either 10, 15 or 20), or for the duration of the annuitant's lifetime, whichever is longer.
And nearly 4 in 10 (38%) expect to receive a life annuity, the survey says.
Although women are likely to live an average of nine years longer than men, and many plan to rely on their husband's pension, half of married men purchase a single life annuity with their nest-egg funds.
A perceived disadvantage of the life annuity is the loss of the investment upon early death.
The hypothetical life annuity is based on the annuity factor in Table S of IRS Publication 1457 for 120% of the Federal mid-term rate.
The reversion makes the lump sum payment due at the end of the life annuity period, i.
The guaranteed life annuity is the only financial product that can fully cover this risk.

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