ANNUITANTS Meaning and
Definition
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Annuitants are individuals who receive regular fixed payments from an annuity. An annuity is a financial product typically offered by insurance companies that provides a series of payments to the annuitant over a specified period. These payments are often designed to provide a steady income stream during retirement.
An annuitant can be the original owner of the annuity or a beneficiary named by the owner. The annuitant is the person whose life expectancy is used to determine the payment amounts and duration of the annuity. In essence, the annuitant's life expectancy serves as the basis for calculating the annuity's payout structure.
The annuitant is generally responsible for making decisions related to the annuity, such as choosing the payment frequency (monthly, quarterly, annually) and selecting any additional options or riders that may be available. The annuitant can also choose to convert the annuity into a series of payments, known as an annuitization, or take a lump-sum distribution if permitted by the annuity contract.
It is important for annuitants to understand the terms and conditions of their annuity contract, including any fees or charges associated with the annuity. It is also advisable for annuitants to regularly review their financial situation and goals to ensure that the annuity continues to meet their needs.
Overall, annuitants are individuals who receive periodic payments through an annuity, which can help provide a stable income stream during retirement.
Common Misspellings for ANNUITANTS
Etymology of ANNUITANTS
The word "annuitants" is derived from the noun "annuity" combined with the suffix "-ant", which forms adjectives or nouns indicating a person or thing that does or receives something.
The term "annuity" is borrowed from the Latin word "annuitas", which means "annual income" or "annual payment". This Latin word is derived from the verb "annuere", meaning "to approve" or "to grant". In ancient Rome, annuities were annual payments made by the government to individuals, often as a reward or pension.
Over time, "annuity" came to refer to a financial contract or investment where an individual receives regular payments or income over a fixed period or their lifetime. "Annuitant" therefore refers to a person who receives these payments or income from an annuity contract.
Similar spelling words for ANNUITANTS
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