Pure Annuity

Definition of "Pure annuity"

Contract sold by insurance companies that pays a monthly (quarterly, semiannual, or annual) income benefit for the life of a person (the annuitant). The annuitant can never outlive the income from the annuity. Upon the death of the annuitant all income payments cease. There are no beneficiary benefits under this type of annuity. Contrast with refund annuity.

Have a question or comment? We're here to help.

Search Real Estate Terms

Popular Real Estate Terms

Deferred Group Annuity

Retirement income payments for an employee that begin after a stipulated future time period, and continue for life. (A beneficiary of a deceased annui ...

Liquidation Period

Time frame during which an annuitant receives income payments from the insurance company, usually on a monthly basis. The obligations of the company t ...

Refund Annuity

Form of annuity returning premiums plus interest to a beneficiary if the annuitant dies during the accumulation period. A refund annuity costs more th ...

Accumulation Period

Time frame during which an annuitant makes premium payments to an insurance company. The obligations of the company to the annuitant during this perio ...