This is an annuity purchased from an insurer that must have a
life contingency within its terms. Often the annuity will be for
life, but it could be for a term ascertainable by reference to
life. For example, the annuity might end at the earlier of death or
the expiration of a fixed term or some other specified event. Or it
might continue after death for a specified term or according to
some other specified rule.
It does not include a pension annuity.
The statutory definition of purchased life annuity is at ITTOIA05/S423 and of life annuity is at ITTOIA05/S473. A more detailed discussion is at IPTM4220.
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