Definition of Annuity

an allotment of money paid from an insurance company either in a full payment or in installments usually for retirement purposes

Examples of Annuity in a sentence

Due to a small pension from her job, Matilda considered buying an annuity at the Lawton Insurance Company so she could live freely during her retirement. 🔊

When the senior citizen finished her career, she cashed in her annuity to receive the maximum payout from her insurer so she could take a cruise around the world. 🔊

While planning for their retirement, the couple considered purchasing an annuity now from the insurer after looking at the interest rates. 🔊

So that the retiree could live her lifestyle comfortably, she decided to receive her annuity with each portion arriving annually. 🔊

Just like the retired factory worker received his social security paycheck and money from his 401k, he also received a check from his annuity each year in January. 🔊

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