Annuity

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1.

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


2.

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.

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


4.

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