A life annuity is a series of payments while a given life survives.
Life annuities play a major role in life insurance. Life insurances are usually purchased by a life annuity of premiums rather than by a single premium. The amount payable at the time of claim may be converted through a settlement option into some form of life annuity for the beneficiary.
Annuities are also central in pension systems as our retirements have a form of an annuity. They also have a role in disability and workers' compensation insurances.
A life annuity may be termporary, that is, limited to …