Annuity is an arrangement whereby a life office/insurance company, in exchange for purchase price/money, enters into a contract to pay a set amount of money (the Annuity) every year while the annuitant (the person on whose life the contract depends) is still alive.
The layman word for an annuity is Pension.
The benefit of an annuity especially when used in connection with retirement provision is that it would ensure that the retiree has an income for life or for a convenient numbers of years. It would therefore provide an assurance against the possibility of the annuitant outliving the capital.
We give guidance on the following types of annuities to help clients make wise choices for their retirement packages;
- Deferred annuity
- Guaranteed annuity
- Temporary annuity