What is an annuity example?

In investment, an annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates.

Who invented annuities?

In 1812, The Pennsylvania Company for Insurance on Lives and Granting Annuities was the first American company to offer annuities to the public-at-large. There are some other famous uses of annuities in American history. Ben Franklin, one of the most famous Founding Fathers, left two annuities in his will to the cities of Boston and Philadelphia.

What is an annuity & how does it work?

The concept of an annuity harkens back to the Roman Empire. During those times, this idea of a guaranteed income stream was known as an “ annua ,” which is Latin for annual stipends. In exchange for making a one-time payment, Roman citizens would receive lifetime payments each year from the annua.