Annuity

1. Cash flow - equal periodicity.

A series of equal future periodic cash flows, starting exactly one period into the future.

2. Cash flow - variable.

More generally, any series of future periodic cash flows, either equal in amount or growing at a fixed compound rate per period, starting at a future date or already in payment, and usually ending at a later future date.

3. Periodic income.

Any financial arrangement in which a periodic income is paid to an individual, often as a pension.

4. Insurance.

An insurance contract purchased from a life assurance company that pays an income in exchange for a lump sum.

There are many variations on annuities, depending on the nature of the income stream.

See also

• Annuity due
• Annuity factor
• Annuity formula
• Annuity ordinary
• Cash flow statement
• Cashflow
• Coupon strip
• Defined contribution pension scheme
• Growing annuity factor
• Insurance
• Lump sum
• Pension
• Perpetuity
• Purchased annuity
• Simple annuity