Reversionary Annuity (Noun)
Meaning
An annuity payable to one person in the event that someone else is unable to receive it.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The reversionary annuity was set up to ensure the wife would receive a steady income if her husband passed away before her.
- As part of the inheritance, the younger sibling was granted a reversionary annuity that would become payable if the older sibling was no longer able to receive it.
- The trust established a reversionary annuity for the charity, which would only be activated if the primary beneficiary was unable to accept the funds.
- In the event that the primary annuitant was incapacitated, the reversionary annuity would be paid to the designated secondary beneficiary.
- The reversionary annuity was an essential component of the estate plan, providing financial security for the family members in the event of an unexpected loss.