Annuity In Arrears


DEFINITION of 'Annuity In Arrears'

An annuity that has periodic payments of either interest and/or principal that must be paid at the end of a set period of time. An annuity in arrears is one of the most common forms of annuities. They are also known as ordinary annuities.

BREAKING DOWN 'Annuity In Arrears'

Annuities in arrears are not marketed as such by most annuity carriers, but they do exist nonetheless. They get their name from the fact that the first full annuity payment is not due until the end of the first term. For example, an annuity that pays out a combination of interest and principal one month from the start of the payment period is an annuity in arrears.

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  1. Can I borrow from my annuity to put a down payment on a house?

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    There are two broad categories of annuity: fixed and variable. These categories refer to the manner in which the investment ... Read Full Answer >>
  3. What are the risks of rolling my 401(k) into an annuity?

    Though the appeal of having guaranteed income after retirement is undeniable, there are actually a number of risks to consider ... Read Full Answer >>
  4. How do I get out of my annuity and transfer to a new one?

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