Definition of Annuity contract:
An annuity contract is a written agreement between an insurance company and a customer outlining each party's obligations in an annuity agreement. Such a document will include the specific details of the contract, such as the structure of the annuity (variable or fixed); any penalties for early withdrawal; spousal and beneficiary provisions, such as a survivor clause and rate of spousal coverage; and more.
An annuity contract is a contractual obligation between as many as four parties. They are the issuer (usually an insurance company), the owner of the annuity, the annuitant, and the beneficiary. The owner is the person who buys an annuity. An annuitant is an individual whose life is used as the yardstick for determining when benefits payments will start and cease.
Agreement that defines the type and terms of an annuity plan. It generally specifies the amount and number of payments, states the payback starting date, and names the annuitant and the beneficiary.
How to use Annuity contract in a sentence?
- Annuities are often complicated financial vehicles.
- An annuity contract can encompass up to four people--issuer (usually an insurance company), the owner of the annuity, the annuitant, and the beneficiary.
- Annuities are often complicated financial vehicles. .
- A beneficiary can inherit an annuity contract upon the annuitant's death. .
- Often the owner and annuitant can be the same person.
Meaning of Annuity contract & Annuity contract Definition