annuity


annuity
In the older sense of the term, a yearly payment of a certain sum of money granted to another in fee, for life, or for years. In the modern sense, a right, bequeathed, donated, or purchased, to receive fixed or certain periodical payments, without contingency, either perpetually or for life or a stated period of time, but not including any interest of the annuitant in the principal fund or source from which the payments derive, his interest being only in the payments themselves. Commonwealth v. Beisel, 338 Pa 519, 13 A2d 419, 128 ALR 978; 4 Am J2d Annui § 1. Typical modern annuities are those payable by insurance companies. 4 Am J2d Annui § 1. The annuity itself is the totality of the payments to be made under the contract. Where the payments are to be made to the annuitant until his death, the annuity is a life annuity. Where the payments are terminable by the voluntary act of the annuitant, the annuity is a term annuity. Bodine v Commissioner (CA3) 103 F2d 982. Many of the payments called for by retirement plans of businesses and industries are annuities, although referred to as pensions. Annuities payable under retirement plans are not gratuities in the same sense as pensions paid to retired members of the armed forces, since such annuities are, in part, payable by contributions made by the annuitants themselves. Even where the annuitant makes no contribution in specie, the annuity is nevertheless not a gratuity, since it is in a proper sense provided for him as consideration for his services performed. 40Am J1st Pens §3. An annuity contract is a security within the meaning of the Federal Securities Act. Securities & Exchange Com. v Variable Annuity Life Ins. Co. 359 US 65, 3 L Ed 2d 640, 79 S Ct 618. See simple annuity; straight annuity; refund annuity.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • annuity — an·nu·ity /ə nü ə tē, nyü / n pl ities [Medieval Latin annuitas, from Latin annuus yearly] 1: an amount payable at regular intervals (as yearly or quarterly) for a certain or uncertain period 2: the grant of or the right to receive an annuity his …   Law dictionary

  • Annuity — An*nu i*ty, n.; pl. {Annuities}. [LL. annuitas, fr. L. annus year: cf. F. annuit[ e].] A sum of money, payable yearly, to continue for a given number of years, for life, or forever; an annual allowance. [1913 Webster] …   The Collaborative International Dictionary of English

  • annuity — (n.) early 15c., a yearly allowance, grant payable in annual installments, from Anglo Fr., O.Fr. annuité (14c.) or directly from M.L. annuitatem (nom. annuitas), from L. annus year (see ANNUAL (Cf. annual) (adj.)). Meaning an investment that… …   Etymology dictionary

  • annuity — ► NOUN (pl. annuities) ▪ a fixed yearly allowance, especially one provided by a form of investment. ORIGIN Latin annuitas, from annuus yearly …   English terms dictionary

  • annuity — [ə no͞o′ə tē, ənyo͞o′ə tē] n. pl. annuities [ME & OFr annuite < ML annuitas < L annuus, annual < annus: see ANNUAL] 1. a payment of a fixed sum of money at regular intervals of time, esp. yearly 2. an investment yielding periodic… …   English World dictionary

  • annuity — /an(y)uwatiy/ A right to receive fixed, periodic payments, either for life or for a term of years. Moore v. O Cheskey, App., 87 N.M. 66, 529 P.2d 292, 293. A fixed sum payable to a person at specified intervals for a specific period of time or… …   Black's law dictionary

  • annuity — /an(y)uwatiy/ A right to receive fixed, periodic payments, either for life or for a term of years. Moore v. O Cheskey, App., 87 N.M. 66, 529 P.2d 292, 293. A fixed sum payable to a person at specified intervals for a specific period of time or… …   Black's law dictionary

  • annuity — A regular periodic payment ( periodic payments) made by an insurance company to a policyholder for a specified period of time. Bloomberg Financial Dictionary An annuity is essentially a regular income for life and is usually purchased with your… …   Financial and business terms

  • Annuity — A regular periodic payment made by an insurance company to a policyholder for a specified period of time. The New York Times Financial Glossary * * * annuity an‧nu‧i‧ty [əˈnjuːti ǁ əˈnuː ] noun annuities PLURALFORM [countable] 1. INSURANCE the… …   Financial and business terms

  • annuity — /euh nooh i tee, euh nyooh /, n., pl. annuities. 1. a specified income payable at stated intervals for a fixed or a contingent period, often for the recipient s life, in consideration of a stipulated premium paid either in prior installment… …   Universalium


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