What is an Annuity? An annuity is a financial contract where you pay money or pledge something of value, and in return, you receive payments over time (usually for life). • In law/commerce: An annuity is a specialty debt under seal — a binding promise of periodic payments, usually backed by a pledge or collateral. Think of it as: “a stream of income created by pledging an asset.” 1. Birth/Baptism Certificates = Securities • These certificates were used as financial evidence for annuities. • They