Annuity

An annuity is a series of equal payments at regular intervals.

Description

Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments.

Annuities are classified by the frequency of payment dates.

The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other interval of time.

An annuity which provides for payments for the remainder of a person's lifetime is a life annuity.