What are annuities used for?

Annuities are mainly used for retirement income purposes. They can help individuals address the risk of outliving their savings. Annuities are financial products that offer a guaranteed income stream and are usually bought by retirees.

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