Annuity
What is Annuity?
An insurance contract that turns a lump sum or payments into a stream of income.
Understanding Annuity
With an immediate annuity, you pay a lump sum and receive guaranteed income, often for life. Deferred annuities grow first and pay out later.
Annuities can protect against outliving your money, but some are complex and carry high fees and surrender charges. Guarantees depend on the insurer's ability to pay.