WELCOME TO

OUR
PRESENTATION
ANNUITIES
 Group Members ID
Jahid Rana 1799

JPM Jisanus Salehin 1800

Mahathir Haque 1801

KM Anamul Haque 1802

MD Sojib Parvez 1803

 What’s Annuity ?

 Annuities – a sum of money

 Practically the same as Pensions

 Provide periodical payments

 Insurance Company makes a series of
periodic payments to a person
(annuitant)
 Or to his dependants
 Over a No of years (Term)
 In return of the money paid to the
Insurance Company
Differences – Annuities & Other Life
Insurance Contracts
Annuity Contracts Other Life
Insurance Policies
Liquidates gradually Provides gradual
the accumulated funds accumulation of funds

Taken for one’s own Generally for benefits

benefit of dependants
The insurer’s payment The insurer’s payment
stops at death is usually given at
death
Annuity Contracts Other Life
Insurance Policies
Premium is calculated Premium is based on
on the basis of the mortality of the
longevity of the policy holder
annuitant
Provides protection Protection against
against living long living short
 Classifications of Annuities:

 Commencement of Income
 Number of Lives Covered
 Mode of Payment Premium
 Disposition of Proceeds
 Special Combination of Annuities
 Commencement of Income
 Immediate Annuity:

 Provides income for a guaranteed

period of time

 Payments begin within one year of

purchase
 Commencement of Income
 Annuity Due:

 Payment begins from the time of

contract

 The payment is made as soon as the

contract is finalised
 Commencement of Income
 Deferred Annuity

 Annuity payments to the annuitant

commence at some specified time or
specified age of the annuitant

 This specified period is called

‘Deferment Period’
 Number of Lives
 Single Life Annuity:

 one single person following is

contractor

 beneficial to those who have no

dependent
 Number of Lives
 Multiple Life Annuity:

 One single person following is

contractor

 More than one life is contracted

Joint life annuity
Last survivor annuity
 Mode of Premium
 Level Premium Annuities:

 The annuitant deposit some amounts

periodically

 At the end, he gets sufficient amount

of annuity in equal instalments
 Mode of Premium
 Single Premium Annuities:

 The annuitant purchase annuity by

payment of single premium

 Generally, life insurance amount is

utilized for purchasing this annuity
 Disposition of Proceeds
 Life Annuity:

 Offers regular income to the

annuitant throughout his life-time

 Ceases on his death

 Disposition of Proceeds
 Guaranteed Minimum Annuity:

 If the annuitant dies before the

specified period
 The annuity will continue up to the
unexpired period
Immediate annuity with guaranteed payment
Deferred annuity with guaranteed payment
 Disposition of Proceeds
 Temporary Life Annuity:

 Ceases at the end of a specified

period or death

 Whichever is earlier
Benefits of Annuities

 Long Term Savings

 Maximize the retirement income

 Regular income for the lifetime

 Tax benefits
Thank You