An Annuity is a right to receive a fixed period of payments, for life or a term of years that is created by a contractor other legal document.

An annuitant is a person who creates an annuity for an individual benefit, deposits a sum of money, the principal,business, or insurance company to be invested so that the principal will earn income at a particular percentage, usually specified by the terms of the annuity.

A group of annuity contract supplies periodic payments to a retiree as a member or group of employees covered by their employer’s contract. A retirement annuity is a policy paid to the person after retirement. If the annuitant dies before the expiration of the annuity or wants to surrender the policy, an amount laid out in the terms of annuity policy is returned to the annuitant’s estate or designated beneficiary.