Difference between revisions of "Purchased annuity"
Revision as of 14:20, 23 October 2012
In its simplest form, a contract purchased from an insurance company that pays a periodic income (for example monthly, quarterly, semi-annually, or annually) for the life of a person, or for the lives of two (or sometimes more) persons. Many variations on this basic theme are available. Generally that part of an annuity representing a return of capital is not taxable.