Annuity (US Financial Products)
In the United States an annuity contract is created when an insured party, usually an individual, pays a life insurance company a single premium that will later be distributed back to the insured party over time. Annuity contracts traditionally provide a guaranteed distribution of income over time, such as via fixed payments, until the death of the person or persons named in the contract or until a final date, whichever comes first. However, the majority of modern annuity customers use annuities only to accumulate funds free of income and capital gains taxes and to later take lump-sum withdrawals without using the guaranteed-income-for-life feature.
Read more about Annuity (US Financial Products): History, General, Immediate Annuity, Deferred Annuity, Taxation, Insurance Company Default Risk and State Guaranty Associations, Compensation For Advisors or Salespeople
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