the.com/annuity
You give an insurer a lump sum so it can pay you back slowly, minus its cut.
means A financial product that pays out a fixed income, usually at regular intervals, in exchange for an initial investment.
from From Latin annus, 'year' — the same root as 'annual.' It passed through medieval Latin annuitas and French annuité before settling into English in the 15th century, originally meaning simply a yearly payment or allowance. The insurance-product sense came later, as the yearly-payment idea got formalized into a financial contract.
- origin
- from Latin annus, meaning year
- tradeoff
- trades liquidity today for income certainty tomorrow
- fee trap
- surrender charges can eat early withdrawals hard
- favorite of
- people who fear outliving their savings