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A life annuity is a financial contract in the form of an insurance product according to which a seller (issuer)—typically a financial institution such as a life insurance company—makes a series of payments in the future to the buyer (annuitant) in exchange for the immediate payment of a lumpsum ( single-payment annuity ) or a series of regular payments ( regular-payment annuity ), prior to the onset of the annuity.
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