annuity

an·nu·i·ty n., pl. an·nu·i·ties. Abbr. ann.
1.a. The annual payment of an allowance or income.
b. The right to receive this payment or the obligation to make this payment.  
2. An investment on which one receives fixed payments for a lifetime or for a specified number of years.

[Middle English annuite, from Anglo-Norman, from Medieval Latin annuit³s, from Latin annuus, yearly, from annus, year. See at- below.]

Usage Example1:  My father bought me new bike as he received his annuity this month.

Usage Example2:  One should always invest for future income, as annuity received could always be helpful.

Comments

A life annuity is a contract that you will have with a insurance company, and the benefit of this, is that you will have a insurance for your lifetime, this one you will enjoy in your retirement, but if you die, the insurance company will only pay the benefits up until the time of death.

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