An annuity is an agreement between an individual and an insurance company that stipulates that the individual pays a monthly or yearly amount to the insurance company for a set amount of time. When the policy matures, or reaches the pre-agreed time, the individual is paid a lump sum. Annuities are often taken out to provide individuals with a retirement "nest egg" to complement their pension funds and other investments. Some insurers also offer "regular-payment annuities" which function similar to pension funds. Most annuities include clauses where the entire annuity is paid to the beneficiary in the event of dread disease, permanent disability or death. Most policies also offer the annuity holder some or other form of payment insurance in the event of retrenchment, permanent disability or dread disease. This kind of insurance will prevent the policy from lapsing if unforeseen events result in the policy holder being unable to continue paying the monthly premium.