life-annuity

A retired couple receives their monthly life-annuity payment.

Definition

1. Noun:
   • Financial product: A "life-annuity" is a fixed sum of money paid to a person annually or at regular intervals for the remainder of their life, typically in exchange for a lump-sum payment or series of payments.

Usage Examples

• Noun:
  • She purchased a life-annuity to ensure a steady income after retirement. (A financial arrangement that provides regular payments for her entire life.)
  • The life-annuity paid out $12,000 per year until the beneficiary's death. (The annuity continues its payments as long as the person lives.)

Advanced Usage

• "to buy a life-annuity": to enter into a contract that guarantees lifelong payments.

  • He bought a life-annuity with his pension savings to avoid outliving his money. (He used his savings to secure a lifelong income stream.)

• "life-annuity payments": the regular disbursements made under such a contract.

  • The life-annuity payments are adjusted for inflation each year. (The payments increase to keep up with rising costs.)

Variants and Related Words

• Annuity (n): a broader term for a fixed payment made at regular intervals over a specified period, not necessarily for life.

  • A fixed-term annuity pays out for ten years, whereas a life-annuity pays for life. (Distinguishes between limited-duration and lifetime payments.)

• Life insurance (n): a different financial product that pays a lump sum upon the policyholder's death, not periodic payments during life.

  • Unlike a life-annuity, life insurance provides a benefit to survivors. (Contrasts the two types of financial instruments.)

Synonyms

• Lifetime annuity: another term for a life-annuity, emphasizing its duration.

  • She chose a lifetime annuity over a term annuity. (She opted for payments until death rather than for a fixed number of years.)

• Pension: a regular payment made to a retired person, often from an employer, which may be structured as a life-annuity.

  • His company pension functions like a life-annuity. (It provides lifelong income after retirement.)

Phrasal Verbs

• (None directly applicable, as "life-annuity" is a compound noun and not typically used with phrasal verbs.)

Related Idioms

• "Annuity for life": a phrase emphasizing the lifelong nature of the payments.

  • The contract guarantees an annuity for life, no matter how long you live. (The payments are assured until death.)

• "To outlive one's annuity": to live longer than the payments were intended to last (though a true life-annuity cannot be outlived).

  • With a life-annuity, you cannot outlive your annuity — it pays until you die. (The product is designed to last a lifetime.)