annuity
Pronunciation: [əˈnjuːɪti]
Word
Context: “finance”
(noun) a financial product that pays you money regularly for a certain period, often until you die. It's like having money that comes to you every month, almost like a paycheck, after you put in a sum of money first.
Example
My grandma receives an annuity that gives her money every month to help with her living expenses.
Example
She doesn’t have an annuity, so she needs to find another way to save for retirement.
Example
What is an annuity, and how does it work?
Context: “insurance”
(noun) a type of insurance agreement where you pay money in, and then you get payments back later, usually for life. It helps people feel secure in their old age because they know they will have money coming in.
Example
After many years of payments, he finally started receiving his annuity checks each month.
Example
Without an annuity, she worries about having enough money when she stops working.
Example
How can an annuity help with financial planning for retirement?
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