Do you know what an Annuity in Insurance means?

[IamDozzy]

This concept might be new to some people especially those that haven't been employed before. Annuity in Insurance is an agreement between an employee and an insurance company by which a lump sum of money or installments of money is paid to the insurance company and in return receive regular payment of that deposited money at some point in future probably after retirement from their present job.

It is similar to pension scheme but the only difference is that pension scheme involves both the employer and employee paying money to the insurance company while annuity totally by passes the employer. Annuity is only done between the employee and the insurance company.
If you've had a experience with Annuity or you know someone that has, kindly share what the process was like. Was it favourable?

 

[Rachelgold]

Well I'm just learning of this one now I've always been hearing of pension. Would like to know more if private companies or organizations engages in it

 

[Godslamp]

An annuity is a type of policy issued by an insurance company designed to accept and grow funds, and upon annuitization, create a stream of income or payments. The money you pay in can be either a lump sum or a number of payments. These contributions generally earn a rate of return, generally tax-deferred.

 

[Alexandoy]

I like the annuity because it works like the pension plan which we all need when we grow old or when we retire. However, I don't think there is an annuity insurance in our country. Maybe it was banned when some insurance companies got bankrupt and neglected the obligations of their clients including the education plan and the memorial plan.

 

[Wisdom01]

This is amazing tho ,since the deal will be between the insurance company and the employee ,I think it's also called retirement benefits ,but what if the insurance company probably goes bankrupt how would the employee be compensated for the deal and money he have been paying to the insurance company

 

[Mandy96]

Honestly typing, it is very new to me because I can say that I have never heard of it or probably say that I don’t have any idea as to what it really means when we talk about insurance generally. But from your analysis I think it’s trying to expatiate on the legal agreement between two parties