Contingent Annuity

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Contingent annuity is an annuity that is subject to conditions or terms that must be met before the beneficiary will receive payments. The most common use of contingent annuities is for life insurance and pensions which are contingent on someone either being alive or deceased. Contingent annuity is to be contrasted with contingent annuitant which refers to a secondary annuitant who receives payments only upon the passing of the primary annuitant. 

[Last updated in June of 2021 by the Wex Definitions Team]