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Insurance & Risk Management
12. Chapter 14: Annuities and Individual Retirement Accounts/Individual annuities
12. Chapter 14: Annuities and Individual Retirement Accounts Illustration
Syllabus Slides

Individual annuities

01.Core Concepts

The fundamental purpose of an annuity is to provide a lifetime income that cannot be outlived Annuity payments consist of three sources: Premium payments Interest earnings Unliquidated principal of annuitants who die early Actuaries use special mortality tables to calculate annuity premiums because annuitants tend to be healthy individuals ‹#›