As a tool for investment and financial security, the life insurance annuity has been around for quite a long time. Annuities first started the ancient Roman Empire. They were a way for Roman citizens to receive a yearly payment for their lifetimes or for several years in exchange for a large upfront payment. Early roman annuities were often given to Roman legionnaires as payment for years of faithful military service. (1) As time passed, the modern life insurance annuity began to take shape.
In medieval times, lifetime annuities bought with a single initial premium became popular among nobles for funding the constant warfare that was a fact of life then. , records show that one of the most popular annuities of the medieval era was called the tontine. (2) In this annuity the participants purchased a share in an annuity pool, and then, in turn, received a lifetime annuity