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immediate payment annuity

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Financial Dictionary

Immediate Payment Annuity

An annuity contract that is purchased with one payment and has a specified payment plan which starts immediately.

Investopedia Commentary

This type of annuity is sometimes used when a person turns 65 (or retirement age).

Related Links

Anything But Ordinary: Calculating The Present And Future Value Of Annuities
Passing the Buck: The Hidden Costs of Annuities
Getting the Whole Story on Variable Annuities

See also: Annuity, Annuity Due

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