Definition of Annuity:
By definition, Annuity is an insurance contract sold by the annuity issuer to a policy holder. Best defined annuity plans are preferred by the investors because of its tax deferred nature, earning against investments & relatively safe low yielding investments that guarantees payments of specific amounts for future. The annuity definition helps in case the people select the well defined investment plans for income.
The "annuity" is so defined for its feature of providing annual payment against allowances or incomes. Every annuity is beneficial if it's chosen properly by understanding the defined key factors of annuity selection like investment premium, the annual payments you get, age factor, interest rate & the company selected for the investment.
Annuities are usually provided by insurance companies such as, ING, Prudential, MetLife etc. and defined with good rate of returns and tax deferred feature.
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