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ANNUITY

Statistics Directorate    
French Equivalent: Rente

Definition:
A form of financial contract mostly sold by life insurance companies that guarantees a fixed or variable payment of income benefit (monthly, quarterly, half-yearly, or yearly) for the life of a person(s) (the annuitant) or for a specified period of time.

It is different to a life insurance contract which provides income to the beneficiary after the death of the insured. An annuity may be bought through instalments or as a single lump sum. Benefits may start immediately or at a pre-defined time in the future or at a specific age.

Context:
Identical term, "Pension annuity".

Source Publication:
OECD Working Party on Private Pensions, 2005, “'Private Pensions: OECD Classification and Glossary, 2005 edition”, OECD, Paris.

Cross References:
Annuity rate

Statistical Theme: Financial statistics

Glossary Output Segments:
OECD Private Pensions

Created on Friday, January 17, 2003

Last updated on Thursday, August 11, 2005