An annuity is a financial product that provides a stream of payments over a period of time. There are two main types of annuities:
Deferred annuities: A deferred annuity is an investment product that allows you to save money over a period of time and then receive payments at a later date. There are two types of deferred annuities: fixed and variable. A fixed deferred annuity pays a fixed interest rate, while a variable deferred annuity allows you to invest in a variety of investment options and the interest rate may vary.
Immediate annuities: An immediate annuity is a financial product that provides a stream of payments starting immediately after you make an initial payment. You can choose to receive payments on a regular basis (such as monthly or annually) or in a lump sum.
Annuities can be used for a variety of purposes, such as saving for retirement, supplementing other income, or providing a guaranteed source of income for a set period of time. Annuities can be complex financial products and it is important to understand the terms and conditions before purchasing one.