immediate annuity

American  

noun

1. an annuity bought with a single premium, with payments to the annuitant to begin at the end of one payment period, as a month or a year.

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immediate annuity British  

noun

1. an annuity that starts less than a year after its purchase Compare deferred annuity

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Example Sentences

See Examples For:

immediate annuity

In the simplest form — a single-premium immediate annuity — a person hands over a lump sum in exchange for a guaranteed monthly check.

From MarketWatch ● Jun. 17, 2026

“The single-premium immediate annuity is one of the most popular forms of annuity and the most efficient,” said Josh Weinstein, vice president of lifetime income solutions at Fidelity.

From MarketWatch ● Dec. 17, 2025

A manufacturing employer with lower-income employees could adopt an immediate annuity at age 67 as a default.

From The Wall Street Journal ● Oct. 18, 2025

Now may be a good time for retirees to buy an immediate annuity, since payouts are the highest they’ve been in a decade, says Rob Williams, managing director of wealth management at Charles Schwab.

From Seattle Times ● Sep. 18, 2023

If your wife purchased an immediate annuity, which offers a stream of payments in return for a lump sum, then she probably can’t change her mind since those transactions are effectively irreversible.

From Los Angeles Times ● Sep. 17, 2023