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Whipsaw Glossary

Currently viewing the definition of: Annuity
 
 
 A person who receives an annuity is called the annuitant. The annuitant pays a lump sum to the life insurance company in return for a regular income. If this money is from the annuitant's own funds, it is called a purchase life annuity. If the money is from a maturing pension fund, it is called a compulsory purchase annuity. There are numerous options to structure the regular payments. Each variable such as frequency of payment, guarantee period, escalation rate, together with gender, age and life expectancy will determine the level of payment made to the annuitant. For example over a twelve-month period you will receive a higher return from an annuity paid quarterly in arrears versus an annuity paid monthly in advance which is guaranteed for five years.  
 


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    • ADR
      ADR stands for American Depositary Receipts. They enable American Investors to own shares in foreign companies, but instead of buying the shares directly, they buy an ADR.