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annuity (noun) a fixed amount of money paid yearly (usually by insurance companies).

A fixed amount of money paid each year life long, is annuity. Insurance companies offer their customers yearly payment of fixed amounts of money each year until death, the amounts depending on the type of policy taken, and the premiums paid.

  • Owing to the rise of cost of living over the years, the annuity Eddy receives now on policies he took years ago is not worth much.
  • The new annuity plan offered by the insurance company is very attractive because its premium rate is lower than the ones charged by the other companies.
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Last Modified : 11-May 2009
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