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TeachMeFinance.com - explain annuity annuity The term 'annuity' as it applies to the area of basic math can be defined as 'a purchased investment contract between a person and an insurance company that defines payments to the insurer, in lump sum or in a series of payments, in exchange for benefits paid back to the insured at a designated date or series of dates'. Previous 5 Terms: Annual operating cost Annual operating factor Annual requirement Annual work plan Annualized loss of life Next 5 Terms: Annular Annular space anoa Anode Anode About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.