Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Annuity Contract

Synonyms:allowance arrangement, annuity agreement, fine print, subsidization contract
Filed Under: annuities, estate-management, investments
Tags: annuity, banking, investment

Definition of annuity contract

annuity contract
1. A contract between an individual and insurer that outlines the obligations for each party of an annuity agreement. Included in an annuity contact are details about the annuity's structure (fixed or variable), early withdrawal penalties, and provisions for the annuitant's spouse and/or beneficiaries.

Related Terms and Acronyms:

  • annuity   A financial instrument that disperses a number of payments over a set period of time.
  • cash refund annuity   An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
  • contract   An agreement between two or more parties that can be enforced by law.
  • deferred annuity   An annuity that makes payments to the annuitant at some date in future instead of immediately.
  • fixed annuity   An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
  • hybrid annuity   An annuity with both fixed and variable annuity elements.
  • inflation-protected annuity   An annuity that guarantees a return equal to or above inflation.
  • investment in the contract   The principal that has been contributed to an annuity.
  • maturity guarantee   A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
  • private annuity   An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.

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