What Does Annuity Mean In Insurance? 
An annuity is a contract between you and your life insurance company in which the insurance company provides payments to you at regular intervals for the rest of your life -LRB- or for a set period of time , or in a lump sum -RRB- , in exchange for you putting in a premium -LRB- either in a lump sum or on a payment plan -RRB- . It is a form of retirement savings . 