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

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 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

The money used to buy an immediate annuity won’t be considered part of your retirement funds when it’s time to calculate required minimum distributions, which usually must begin at 73.

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

By deferring the payout, consumers can purchase a much larger income stream than with an immediate annuity.

From Forbes • Nov. 4, 2014