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The difference between a lump sum and annuity is, lump some you get a anywhere between half or 3 quarters of the money. An annuity is where you will get a certain amount of money for a certain amount of years.

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Is a annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future payments?

It is worth more than a one lump sum.


Is an annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future annuity payments?

An annuity is typically worth less than a lump sum payment when considering the time value of money. This concept states that a dollar today is worth more than a dollar in the future due to its potential earning capacity. Therefore, the total present value of future annuity payments, when discounted back to the present, is usually lower than a lump sum payment received now.


Which of the following is a description of an annuity?

the insured agrees to make a lump-sum payment or series of payments to an insurance company...


Can you get lump sum payment on a retirement annuity?

In most cases, you cannot take a lump sum payment from a retirement annuity until you reach retirement age or meet specific conditions, such as disability. Some plans may allow for partial withdrawals or loans against the annuity, but these options can vary widely based on the terms of the contract and applicable laws. Always consult your financial advisor or the annuity provider for specific details regarding your situation.


Which type of insurance contract requires a lump sum or periodic payment in exchange for receiving periodic payments from the insurance company?

As you have described it, this sounds very similar to an annuity.

Related Questions

What is the difference between lump sum settlements and an annuity?

Lump sum refers to money that is paid in full up front typically from a settlement. Annuity settlements are when the payments are made over time in installments.


Can you sell your military retirement annuity for a cash lump sum?

yes


How can you sell your military retirement annuity for a cash lump sum?

Explain! Yes is not an answer...


What is the difference between annuity and life insurance?

An annuity is a financial product that provides regular payments over a set period of time, typically in retirement. Life insurance, on the other hand, provides a lump sum payment to beneficiaries upon the death of the insured person.


In joint life annuity one person dies does survivor get lump sum?

No, not unless the survivor asked to surrender the policy. If the survivor wants a lump sum, it is available.


Is a annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future payments?

It is worth more than a one lump sum.


What percentage fee does an annuity settlement buyer usually charge?

Annuity settlement buyers offer you a lump sum in exchange for the future payments you are due to receive. Most of the time these companies offer a 50% - 60% lump sum of the total payments.


Can I buy an annuity for my retirement savings?

Yes, you can buy an annuity for your retirement savings. An annuity is a financial product that provides a stream of income in retirement in exchange for a lump sum payment.


How do you get your principal back from an annuity?

To get your principal back from an annuity, you typically need to wait until the annuity reaches its maturity date. At that point, you can choose to receive your principal back in a lump sum or in periodic payments.


What is the concept of selling annuity about?

Selling an annuity is basically taking a lump sum withdrawal from it. People use it as an investment tool to defer paying taxes on a portion of their money.


Which of the following is a description of an annuity?

the insured agrees to make a lump-sum payment or series of payments to an insurance company...


Is there a difference between a reverse mortgage and a reverse annuity mortgage?

The terms are similar and both relate to reverse mortgages, however a reverse annuity mortgage often refers specifically to reverse mortgages where the borrower chooses to receive monthly payments from the lender rather than getting a lump sum of cash upfront or a line of credit.