Annuity Payment Structure

An Annuity Payment Structure is a payment method that corresponds to an equal interest payment amount at regular time intervals.

• Context:
  • It can range from being a Fixed Annuity to being a Variable Annuity.
  • …
• Example(s)
  • a periodic Interest Payment (such as for a loan).
  • a periodic Home Mortgage Payment.
  • a periodic Insurance Payment.
  • a Life Annuity.
  • …
• Counter-Example(s)
  • Income Taxes
  • Fee.
• See: Annuity Investment, Equity-indexed Annuity, Interest Rate, Annual Percentage Rate.

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References

2018

• (Wikipedia, 2018) ⇒ https://en.wikipedia.org/wiki/Annuity Retrieved:2018-7-26.
  • An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular interval of time.

    An annuity which provides for payments for the remainder of a person's lifetime is a life annuity.

2016

• (Investopedia, 2016) ⇒ http://www.investopedia.com/terms/a/annuity.asp
  • QUOTE: An annuity is a contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. The period of time when an annuity is being funded and before payouts begin is referred to as the accumulation phase. Once payments commence, the contract is in the annuitization phase.

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