Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Marguerita is a Certified Financial Planner (CFP), Chartered Retirement Planning Counselor ...

In the world of finance, an annuity is a contract between you and a life insurance company in which you give the company a lump sum or series of payments, and in return, the insurer promises to ...

Ordinary annuities pay at the end of a period. Annuities due pay in advance or at the beginning of a period. Because of the difference in payment timing, the present value of an annuity due will be ...

The key difference between an ordinary annuity and an annuity due is when payments are made, which can affect the overall value. Ordinary annuity payments are made at the end of each period. Annuity ...