immediate annuity


Also found in: Financial, Wikipedia.

immediate annuity

n
(Banking & Finance) an annuity that starts less than a year after its purchase. Compare deferred annuity
Mentioned in ?
References in periodicals archive ?
On the other hand, a client who is looking for immediate income distributions should consider buying a straightforward immediate annuity.
Some academic research supports the premise that an immediate annuity can provide financial benefits to retirees, when combined with other investments and Social Security.
A medically underwritten immediate annuity will provide a guaranteed income stream to help cover retirement and long-term care expenses for life.
Genworth (NYSE: GNW) has launched the IncomeAssurance Immediate Need Annuity, a single premium immediate annuity that provides a lifetime of monthly income payments for older, less healthy Americans, the company said.
If your client needs income immediately, suggest an immediate annuity that allows instantaneous access to funds.
The FAB also considers the duration of a plan fiduciary's monitoring duty in the context of two factual examples, the first involving an immediate annuity and the second a longevity annuity option that does not begin providing income until a specified date that is 10 to 15 years after retirement).
We outsource our long-term care insurance to the specialist, and then he refers the clients back to us to calculate a single premium immediate annuity amount that will fund the long-term care.
So, as more and more people start to buy deferred annuity plans (where you accumulate a pension fund during working life), experts say a large number of people will opt for immediate annuity plans such as VPBY too.
Rituraj Bhattacharya, head, product development, Bajaj Allianz Life Insurance, says, "The new pension product guidelines have made it mandatory for companies to bridge the gap between deferred and immediate annuity plans wherein the insured will have to compulsorily buy immediate annuity from the same insurer on attaining the vesting age.
So, as more people start to buy deferred annuity plans ( where you accumulate a pension fund during working life), experts say a large number of people will opt for immediate annuity plans.
Upon purchasing an immediate annuity, an individual makes an initial cash deposit with the annuity company and then receives monthly income distributions, either over a certain period or for life.
Bajaj Allianz Life Insurance has introduced a non-linked immediate annuity plan called Pension Guarantee.