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Vitthub
Glossary term

Annuity

Guaranteed income for life

🌍 UniversalReviewed Plain-English
Definition

What is Annuity?

An annuity is an insurance contract that pays a guaranteed income for life (or a fixed term) in exchange for a lump-sum or regular premium. Returns are typically 4–7% — lower than equity but inflation-adjusted options exist. Used at retirement to lock in base expenses (rent, utilities) regardless of market moves.

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