A mortgage arrangement where the borrower repays both interest and principal over the term of the mortgage (cf. annuity).
A person who receives an annuity.
An annuity in which payments continue for a specified period irrespective of the life or death of the person covered. In general, annuities cease on the death of the policyholder unless they are ...
An annuity where the cash flows occur at the start of each period rather than the end. That is, the first payment is ‘due’ now.
Income or payments that are received over a number of periods (cf. annuity). See cash flow.
An annuity that converts capital into income. Capital-conversion policies are often used to provide an income later in life for a person who might be liable to capital gains tax if his or her capital ...
A series of future cash flows (cf. annuity). Often called a cash stream.
An annuity in which the payment is conditional on a specified event happening. The most common form is an annuity purchased jointly by a husband and wife that begins payment after the death of one of ...
Taxes levied on a person's estate at the time of death. The principal death duty in the UK is inheritance tax. Gifts made within the seven years preceding death are also within the scope of this tax.
An annuity in which payments do not start at once but either at a specified later date or when the policyholder reaches a specified age.
A measure of the sensitivity of bond prices to changes in yield. See also convexity.
A mortgage in which the rate of interest paid by the borrower is fixed, usually for the first few years of the loan.
An annuity contract that begins to make payments as soon as the contract has come into force.
Another term for a purchased annuity.
Payment of a total sum in regular amounts at intervals over a period, instead of making a single payment. Instalment payments are used in credit agreements and can be used to pay utility bills.
An option in which the premium is settled in a number of payments.
Interest rate swap used to hedge the cash flows from an amortizing instrument, where the fixed rate leg matches the payment flows from the instrument. See annuity.
An annuity that ceases to be paid on the death of a specified person, which may or may not be the annuitant.
(UK).A method of calculating pension income according to the accumulated value of the contributions made. Under this method the ultimate pension will depend on investment return, the level of ...
A specified sum paid regularly to a person who has reached a certain age or retired from employment. It is normally paid from the date of reaching the specified age or the retirement date until ...