What does Annuity Contract mean?

An Annuity Contract supposes the existence of a written document which implies acceptance between the insurance company and the annuitant. The document implies the presentation of such terms as the type of the annuity- be it fixed or variable-, the spousal coverage issue (upon request), and in general all the important terms and conditions the annuitant agrees to.

Annuity Contract explained

An annuity contract implies the fact that the account is a tax deferred one, which is the first advantage one such annuity agreement can bring. Basically, by an annuity agreement the insurance company guarantees the payment of the account as settled in the contract’s provisions. This type of income generating procedure is becoming more and more popular among persons who wish to have careless retirement years.