Definition Financial _ Investopedia Explains Annuity

A annuities definition financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, annuity, pay a stream of payments to the person at a later time . Annuities are primarily used as a means of ensuring a steady cash flow for an individual during their detriment years. Investigated says Investigated explains annuity

Annuities can be structured in a wide range of details and annuities definition factors such as the duration of pension payments can be guaranteed to continue. Annuities can be created so that when initialization , payments will continue as long as it is the beneficiary or their spouse is alive. Otherwise , annuities can be structured to pay money for a certain period of time , egg 20 years , regardless of how long the beneficiary resides. Annuities can be structured to provide periodic payments of annuities definition fixed payments or variable income.

The purpose of variable annuities is to enable the beneficiary to receive higher payments if the investments of the pension fund do well and smaller payments if its investments hurt. This provides a stable cash flow within fixed annuity , but allows the annuitant to reap the benefits of high returns on investment of their funds. The ways in which annuities can be structured annuities definition to offer people looking to build a pension annuity contract that best meets your needs flexibility.