There can be a few different definitions but in short as it applies to insurance or financial services:
= Two Main Annuity Types: Immediate and Deferred =
The difference between deferred and...
In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each...
An annuity due is an annuity where the payments are made at the beginning of each time period; for an ordinary annuity, payments are made at the end of the time period.
an annuity due of (n) periods...
They are both good invesment instruments when used for the right purposes. Both are insurance policy contracts with distinctive features and differences.