Annuity vs Life annuity
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Vanshika Gupta.
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Vanshika Gupta
Description: What is the difference between Annuity and Life annuity?
An annuity is a contract between you and an insurance company where individuals agree to pay the company a certain amount of money, either in a lump sum or through installments, which entitles them to receive a series of payment at some future date or immediately.
The term life annuity refers to a financial product that features a predetermined periodic payout amount till the death of the annuitant. An annuitant typically pays into the annuity on a periodic basis when he or she is still working. Life annuities are commonly used to provide guaranteed or supplemental retirement income that cannot be outlived.
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