Investment Dictionary

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Investment Dictionary - Annuity

A form of income that is paid to an individual or annuitant by an insurance or trust company. The income is usually a fixed amount, paid in regular installments, over a fixed period of time, or for the life of the individual. A term certain annuity is for a fixed period of years, whereas a life annuity is for the life of the individual with a guaranteed payment period for a fixed number of years. A prescribed annuity is an income-stream that pays out a fixed amount of interest along with original invested capital and offers good tax benefits.














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