What does Pure Annuity mean? Read on to discover the definition & meaning of the term Pure Annuity - to help you better understand the language used in insurance policies.
Annuity that pays periodic income over the life of an annuitant, and stops only with his or her death. Premiums for a pure annuity are deemed fully earned-as-paid, because they are discounted for the possibility of the annuitant's death during the accumulation period. A pure annuity cannot be transferred to a beneficiary other than the annuitant, and no premium refunds are usually made if the annuitant dies before annuity payments begin.
We hope the you have a better understanding of the meaning of Pure Annuity.