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