Legal Definitions - annuity insurance

Annuity insurance is a type of insurance that provides regular payments to the insured person. These payments usually start at a specific date and continue for the rest of the person's life.

An annuity policy is a specific type of insurance policy that provides regular payments to the insured person. These payments can start at a specific date and continue for the rest of the person's life.

For example, let's say John purchases an annuity policy from an insurance company. The policy states that John will receive $1,000 per month starting on his 65th birthday and continuing for the rest of his life. This means that John has purchased annuity insurance, and the policy he has is an annuity policy.

Another example of annuity insurance is a pension plan. Many employers offer pension plans to their employees, which provide regular payments to the employee after they retire. These payments are a form of annuity insurance, as they provide a regular income stream to the employee for the rest of their life.

Overall, annuity insurance is a useful tool for individuals who want to ensure a steady income stream during their retirement years. By purchasing an annuity policy, individuals can rest assured that they will receive regular payments for the rest of their life, providing them with financial security and peace of mind.