Life and Annuity Insurance

A life insurance product under which the insurer undertakes, upon the occurrence of a specified event (for example, survival to a certain age or the expiration of a contractual term), to pay the insured or another designated person periodic payments in the form of an annuity (pension or other regular payments) for a fixed term or for life. This insurance combines life protection with a savings component, providing long-term income after the contract term or upon the occurrence of the agreed event. In the event of the insured’s death before annuity payments commence, the contract may provide for the payment of compensation to heirs or other designated beneficiaries.