Definition of "annuity" []

• The annual payment of an allowance or income. (noun)
• The right to receive this payment or the obligation to make this payment. (noun)
• A contract or agreement by which one receives fixed payments on an investment for a lifetime or for a specified number of years. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

• "WASHINGTON Reuters - Not too long ago, if you mentioned the word "annuity" to investors, their eyes glazed over."
• "If an older person would drop $5K on something frivilous when they can't afford to just because they convince themselves they can afford to do it and really need it ... an annuity is a hell of a lot better situation than having the money easily available."
• "I mean, yeah, if people die unexpectedly early then life insurance that pays an annuity is cheaper (for the insurer) than life insurance that pays a fixed benefit."