A life insurance product that pays periodic income benefits for a specific period of time or over the course of the annuitant's lifetime. There are two basic types of annuities: deferred and immediate. Deferred annuities allow assets to grow tax-deferred over time before being converted to payments to the annuitant. Immediate annuities allow payments to begin within about a year of purchase.

"Annuity" In Context

"Congress is considering allowing federal employees to phase into retirement by drawing a partial annuity while working part time and using some of that time to mentor young employees. READ: Senate backs phased retirement for federal employees Is ..."