Annuity Table

What Does Annuity Table Mean?

Annuity tables are used to determine the current value of annuities by considering the amount of money paid into the annuity and the duration for which payments have been made.

These tables are particularly relevant to the insurance industry, as annuities are often included as part of life insurance policies.

Insuranceopedia Explains Annuity Table

Actuaries and other insurance professionals frequently use annuity tables for calculations. Generally, the longer someone contributes to an annuity and the larger the contributions, the higher its current value. Because the value of an annuity depends on how much is paid in and for how long, the price of the underlying policy matters when planning ahead, and the average cost of life insurance varies widely by age and coverage amount.

Annuities can serve as a reliable way to generate a fixed income for retirement. For people getting closer to that stage, annuities are one reason shopping life insurance for seniors takes more than a quick price check.