Annuity Types

Such a lump sum payout is usually optional and available only at certain period of time.

Annuity types. Lump sum Annuity. The main types of annuities are fixed annuities fixed indexed annuities and variable annuities. Annuities in this sense of the word are divided into 2 basic types.

With a deferred annuity your money is invested for a period of time until you are ready to begin taking withdrawals typically in. There are three basic types of annuities fixed variable and indexed. Each type has its own level of risk and payout potential.

Payments of an annuity-due are made at the beginning of payment periods so a payment is made immediately on issueter. Annuities may be classified in several ways. All of the following types of annuities are available in fixed or variable forms.

For example bonds usually. Its important to consider your income goals risk tolerance and payout options when deciding which type of annuity is. Each plays a unique role in when you receive payments in retirement and the payout amounts.

Deferred annuities for retirement can remain in the deferred stage for decades. You can lose money in a variable annuity. There are five main types of annuities.

Fixed annuities pay out a guaranteed amount. Get Help Buying an Annuity. Here is how they work.