Annuity is a term that is commonly used in the financial world. It is a financial product that provides a regular income stream to an individual or a group of individuals. Annuity is a type of investment that is designed to provide a steady income for a specific period of time. This article will explore the definition and meaning of annuity, its origin, and its associations.
Definitions
Annuity is defined as a fixed sum of money paid to an individual at regular intervals. It is a financial product that is designed to provide a steady income stream for a specific period of time. Annuity can be purchased from an insurance company or a financial institution.
Origin
The word annuity comes from the Latin word “annus,” which means year. Annuity has been around for centuries and has been used by different cultures and societies. In ancient Rome, annuity was used as a way to provide financial support to retired soldiers. In the Middle Ages, annuity was used as a way to provide financial support to widows and orphans.
Meaning in different dictionaries
According to the Merriam-Webster dictionary, annuity is defined as “an amount of money that is paid to someone every year.” The Oxford English Dictionary defines annuity as “a fixed sum of money paid to someone each year, typically for the rest of their life.”
Associations
Annuity is associated with retirement planning and is often used as a way to provide a steady income stream during retirement. Annuity is also associated with insurance companies and financial institutions that offer annuity products.
Synonyms
The synonyms of annuity include pension, allowance, stipend, and income.
Antonyms
The antonyms of annuity include lump sum, one-time payment, and capital.
The same root words
The same root words as annuity include annual, annals, and anniversary.
Example Sentences
- John purchased an annuity from an insurance company to provide a steady income during his retirement.
- Mary received an annuity from her late husband’s pension plan.
- The annuity payment will be made to the beneficiary every month for the next 20 years.
- The annuity payout is based on the amount of money invested and the length of the payout period.
- An annuity can be a good investment option for those who want a steady income stream during retirement.