Define: Life Annuity

Business, Legal & Accounting Glossary

Definition: Life Annuity



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Full Definition of Life Annuity


A life annuity is an annuity that pays out periodic income for as long as the annuitant (the beneficiary of the life annuity) is alive. A life annuity is sold by an insurance company; its payout is in the form of a predetermined amount that lasts until the death of the annuitant. A life annuity may be purchased all at once, or it may be bought over time, usually while the annuitant is working. The life annuity is generally used as a form of retirement income, received periodically (usually once a month). Upon death, payments from the life annuity cease. A life annuity can exist in a large variety of forms, and is generally sheltered from income tax until retirement.


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Life Annuity. PayrollHeaven.com. Retrieved April 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/life-annuity/

Definition Sources


Definitions for Life Annuity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February, 2020