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Future Payments Defined

An annuity is a stream of payments paid on specific dates in the future, usually paid by an insurance company.

Payments may be guaranteed or life-contingent [usually on the life of the principle Annuitant].

 

 

- SPIA: Single Payment Immediate Annuity

- Lottery/Casino Winnings: often large value winnings at a Casino are paid out over time, most often in a 20-25 year time frame.

- Pensions

 

Annuity

Most common examples:

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