What is annuity

noun a fixed sum of money paid to someone each year, typically for the rest of their life."he left her an annuity of £1,000 in his will"

What annuity means?

An annuity is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future.

What is an annuity and how does it work?

An annuity is an insurance contract in which you make a lump sum or series of payments to an insurer, who then provides periodic payments to you immediately or at some point in the future. An annuity is a financial product typically used by retirees that offers a guaranteed income stream.

What are the 4 types of annuities?

There are four basic types of annuities to meet your needs: immediate fixed, immediate variable, deferred fixed, and deferred variable annuities. These four types are based on two primary factors: when you want to start receiving payments and how you would like your annuity to be invested.

Is An annuity a good investment?

Is an Annuity a Good Investment? Annuities are a good investment for people wanting a reliable income stream during retirement. Annuities are insurance products, not an equity investment with high growth. This makes annuities a good balance to a financial portfolio for someone near or in retirement.