What are annuities? An annuity is just the opposite of life insurance. Life insurance is the systematic accumulation of an estate that is used for protection against finan loss resulting from premature death. In contrast, annuities are a means of securing a steady cash flow during retirement. The period in which the premiums are paid toward the purchase of an annuity is called the period. The period when the annuity payments are made is called the period. The prindpal is the premium paid by the individual buying the annuity (called the 1. Interest is earned between the time annuities are. . accruing tax free but paid fo with after-tax dollars. If any portion of the principal and interest has not been returned, it is referred to as the benefit. Match the annuity terms on the right with the descriptions of the terms on the left, (Hint: These are not necessarily complete definitions, but there only one possible answer for each term.) Often purchased by individuals, this annuity allows periodic payments made over time. In this type of contract, the benefits aren't limited to the purchaser only but may extend to named beneficiaries. A lump-sum payment purchases this annuity. This annuity staten that benefit payments can be strotched for a number of years. This annuity allows the purchaser to recolve monthly benefits immediately