Group Annuity
What Does Group Annuity Mean?
A group annuity is an annuity that involves multiple annuitants, often used by employers to provide a fixed income for retirement to their employees. These annuities are typically created for employees of the same company and are designed to ensure a steady stream of income during retirement.
Many life insurance companies offer group annuities as part of their life insurance policies, allowing employers to provide this benefit to their employees as a retirement savings option.
Insuranceopedia Explains Group Annuity
Group annuities are funded by premiums paid by the group of annuitants. The premium amounts are typically determined based on the size of the annuity and the agreement made between the group and the life insurance company.
Generally, annuitants do not begin receiving payments from the annuity until they retire. The annuity is designed to provide a steady income during retirement, with payments beginning once the annuitant reaches the agreed-upon retirement age or condition.
