annuity

[ uh-noo-i-tee, uh-nyoo- ]

noun

, plural an·nu·i·ties.

1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient's life, in consideration of a stipulated premium paid either in prior installment payments or in a single payment.
2. the right to receive such an income, or the duty to make such a payment or payments.

annuity

/ əˈnjuːɪtɪ /

noun

1. a fixed sum payable at specified intervals, esp annually, over a period, such as the recipient's life, or in perpetuity, in return for a premium paid either in instalments or in a single payment
2. the right to receive or the duty to pay such a sum

annuity

1. A sum of money payable yearly or at regular intervals.

Notes

Many people's retirement funds are set up to be paid in annuities.

Other Words From

• super·an·nui·ty noun plural superannuities

Word History and Origins

Origin of annuity¹

First recorded in 1400–50; late Middle English, from Anglo-French annuité, annualté, from Medieval Latin annuitās, equivalent to Latin annu(us) “yearly,” derivative of annus “year” + -itās -ity

Word History and Origins

Origin of annuity¹

C15: from French annuité, from Medieval Latin annuitās, from Latin annuus annual

Example Sentences

Tuesday’s winner can opt for an annual annuity that pays out over 30 years or claim a $409.3-million lump sum.

From Los Angeles Times

The legislation goes further to assert that the act of killing oneself with self-administered prescription medication does not invalidate any part of an insurance policy or annuity.

From Seattle Times

The jackpot has a cash value of $621 million if the winner chooses to take a lump sum rather than an annuity paid over 30 years, with an immediate payout followed by 29 annual installments.

From Seattle Times

That’s because while officials tout the $1.23 billion prize, that is for a sole winner who chooses to be paid through an annuity, with an immediate payment and then annual payments over 29 years.

From Seattle Times

The $975 million prize is for a sole winner who makes the rare decision to be paid over 30 years through an annuity.

From Seattle Times

Related Words

• amount
• award
• cash
• deposit
• disbursement
• fee
• outlay
• pension
• premium
• refund
• reimbursement
• remittance
• reparation
• repayment
• restitution
• return
• reward
• royalty
• salary
• settlement