What Annuity

Or you could go with a fixed period annuity that will send you payments for a set amount of timeanywhere from 5 to 25 years.

What annuity. The Big Picture. An annuity is a financial product that pays out a fixed stream of payments to an individual primarily used as an income stream for retirees. Videos you watch may be added to the TVs watch history and influence TV recommendations.

An annuity is an insurance contract that exchanges present contributions for future income payments. What Are the Benefits to Having an Annuity. You buy an annuity by making either a single payment or a series of payments.

One of your options is a lifetime annuity that will pay you a certain amount for the rest of your life. An annuity is a contract between the policyholder and the insurance company wherein the policyholder needs to make either lump-sum payment or pay in installments to receive regular. Recurring payments such as the rent on an apartment or interest on a bond are sometimes referred to as annuities In ordinary annuities payments are made at the end of each period.

The amount you are paid. The annuities can be paid either immediately after payment of the lump-sum amount or after completion of the specific tenure. You can set the amount that is paid after the first death at 100 the same as the initial rate or 66 or 50.

How is an annuity calculated. Sold by financial services companies annuities can help reinforce your plan for retirement. These annuities pay you an income then after you die an income to your partner or spouse until they die.

An annuity can provide certainty that youll receive a predictable amount much like a salary and it wont run out no matter how long you live. An annuity is a contract between you and an insurance company that requires the insurer to make payments to you either immediately or in the future. An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time.