Annuity

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    Annuity

    An annuity is provided by a pension provider or insurance company. It will give regular payments over a defined period of time or upon death. Annuities are usually bought with a large lump sum payment, such as an accumulated pension fund. There are several different kinds of annuities available. Some will increase in line with inflation, others are guaranteed for a certain period of time. You can also get single and joint life annuities, depending on whether you want to provide for your dependents after your death.