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

Between ages 59 ½ and 78, savers have the option to use some or all of the money associated with their insurance exposure to purchase an immediate annuity.

From The Wall Street Journal ● Jun. 10, 2026

A single-premium immediate annuity sold by insurers and brokerage firms — where you hand over a sum of money and the company invests it — can also provide monthly lifetime income.

From MarketWatch ● Dec. 12, 2025

A single-premium immediate annuity sold by insurers and brokerage firms — where you hand over a lump of money and the company invests it — can also provide monthly lifetime income.

From MarketWatch ● Nov. 18, 2025

An immediate annuity is an insurance product that provides guaranteed income: You give an insurer a chunk of money, and the company gives you a stream of payments that can last for life.

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