Annuent is a financial term that refers to an individual or entity who receives regular payments from an annuity contract. An annuity is a financial product typically offered by insurance companies, where an individual invests a lump sum of money or makes regular contributions over a period of time in exchange for guaranteed regular income payments in the future.
The annuent, in this context, is the recipient or beneficiary of these income payments. They can be an individual, such as a retiree, who has purchased an annuity to provide a steady stream of income during their retirement years. Alternatively, the annuent could be an organization or institution, such as a charity or nonprofit, that has been designated as the recipient of the annuity payments.
Annuents receive payments according to the terms outlined in the annuity agreement. These payments can be made on a monthly, quarterly, semi-annual, or annual basis, depending on the preferences of the annuent and the structure of the annuity contract. The frequency and amount of the payments are determined by factors such as the size of the initial investment, the length of the payout period, and the interest rates prevailing at the time of purchase.
In summary, an annuent is an individual or entity that receives regular income payments from an annuity contract, typically invested to ensure a stable financial future, often during retirement.
