Annuities

An rente may be defined as a contract whereby for a cash consideration,(called premium) one set forthy (the insurance policy get on withnt) agrees to ease up the other (the annuitant) a stipulated sum (the rente),throughout support,or during the face within a fix term,either annually, semiannually quarterly or monthly. The purpose of the annuity is to protect a hazard-the outliving of ones income. It is just frigid of insurance contract. The annuity protects against the absence of income in old age. A periodical summate is given by the insurance to the insured up to his life or up to a located period life thereafter. Under this annuity the payment of annuity starts from the date of origin annuity period. For example,if annuity is to be stipendiary sixmonthly and contract of annuity,i.e.,payment of leverage price is made on foremost Jan.,1976,the first annuity will be nonrecreational on 1st June, 1976. Therefore,up to this period,the insurer can enjoy the p remium paid sixmonths ago. If he survives to following period of installment,the insurer has to pay the second gear installment of annuity. The immediate annuity may be (1) biography annuity,and (2) Term Annuity. (1) utmost Single agiotage in career Annuity: In this case,the payment of annuity shall continue up to the life of the annuitant. No annuities are paid after his finale nor is any part of the consideration refunded to his beneficiaries. The cost of annuity depends upon his selection; therefore,the calculation is found upon the probability of survival. (2) Net Single Premium for Temporary (Term) Annuity: The process of calculation is the same as discussed above with unless difference that the calculation continues only up to a fixed period. It does not,like annuity,continue up to the completion of Annuity Mortality Table. For example,an annuity of Rs. 1,000 to be paid annually is taken at the age of 70 and continues up to 5 years.If you want to get a respectable essay, order it on our website: ! OrderCustomPaper.com

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