https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AImmediate_annuity 2026-06-14T03:44:48Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Immediate_annuity&diff=9161&oldid=prev 2026-03-11T05:03:03Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>💰 &#039;&#039;&#039;Immediate annuity&#039;&#039;&#039; is an [[Definition:Annuity | annuity]] contract that begins paying income to the [[Definition:Annuitant | annuitant]] within one payment period — typically 30 days — after a single lump-sum [[Definition:Premium | premium]] is remitted to the [[Definition:Insurance carrier | insurance carrier]]. In the insurance industry, immediate annuities serve as the primary vehicle for converting accumulated assets into a guaranteed income stream, often at retirement. They stand in contrast to [[Definition:Deferred annuity | deferred annuities]], which accumulate value over time before an optional or scheduled [[Definition:Annuitization | annuitization]] phase begins.<br /> <br /> 🔄 Once the purchaser transfers the lump sum, the insurer pools those funds with its [[Definition:General account | general account]] assets and applies [[Definition:Actuarial science | actuarial]] factors — the annuitant&#039;s age, gender (where permitted by regulation), chosen payment frequency, and selected payout option — to calculate a periodic benefit. Common payout structures include [[Definition:Life annuity | life-only]], [[Definition:Life annuity with period certain | life with period certain]], and [[Definition:Joint and survivor annuity | joint-and-survivor]] options, each balancing longevity protection against the desire to leave residual value to [[Definition:Beneficiary | beneficiaries]]. The insurer assumes the [[Definition:Longevity risk | longevity risk]]: if the annuitant outlives actuarial expectations, the carrier continues payments from its reserves and investment income.<br /> <br /> 🛡️ Immediate annuities occupy a unique space because they address one of the most consequential risks individuals face — outliving their savings. For insurers, the product creates long-duration [[Definition:Insurance liability | liabilities]] that must be matched carefully through [[Definition:Asset-liability management (ALM) | asset-liability management]] strategies, typically involving high-quality [[Definition:Fixed income | fixed-income]] portfolios. From a distribution standpoint, the growing retirement-planning market has made immediate annuities a focal point for [[Definition:Insurtech | insurtech]] platforms that simplify quoting and comparison shopping, helping [[Definition:Insurance agent | agents]] and direct-to-consumer channels reach buyers who might otherwise overlook annuitization as a retirement-income tool.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Deferred annuity]]<br /> * [[Definition:Annuitization]]<br /> * [[Definition:Longevity risk]]<br /> * [[Definition:Life annuity]]<br /> * [[Definition:Asset-liability management (ALM)]]<br /> * [[Definition:Annuitant]]<br /> {{Div col end}}</div>

PlumBot