Definitions

1. noun

A series of fixed payments made at regular intervals, typically for life, in exchange for a lump sum payment or a series of payments.

“She purchased an annuity to secure her income in retirement.”

2. noun

A type of insurance policy that pays a fixed sum of money to a beneficiary upon the death of the policyholder.

“The life insurance policy was converted into an annuity to provide a steady income for the family.”

3. noun

A type of investment that provides a steady income stream to the investor, often in the form of regular interest payments.

“The annuity investment generated a steady income for the investor over several years.”