There are two main types of annuities: deferred and immediate. Deferred annuities provide a stream of income later, while immediate annuities provide income now. Within the deferred and immediate categories are fixed and variable annuities. Here is an overview of the different types of annuities:
What is an annuity & how does it work?
At its most basic level, an annuity is a contract between you and an insurance company that shifts a portion of risk away from you and onto the company. There are 2 basic types of annuities: Income annuities can offer a payout for life or a set period of time in return for a lump-sum investment.
What is an annuity contract?
Annuity Contract: What It Means and How It Works An annuity contract is a written agreement between an insurance company and a customer outlining each party's obligations in an annuity agreement. more
