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Question 1 of 31 in Basics

What is an annuity?


Basically, an annuity is just a series or stream of payments. “Annuity” comes from the Latin for “year”. In the context of life insurance, it is a contract between you and an insurance company under which the insurance company pays you money for a stipulated period — often for life. The payments are frequently monthly. The person receiving the payments is referred to as an “annuitant.”
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