20 Things You Need to Know Before Buying an Annuity What Is an Annuity? An annuity is a contract between you and an insurance company to cover specific goals, such as principal protection, lifetime income, legacy planning or long-term care costs
What are annuities and how do they work? - Fidelity Investments 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
Annuity - Wikipedia In investment, an annuity is a series of payments of the same kind made at equal time intervals, usually over a finite term [1] Annuities are commonly issued by life insurance companies, where an individual pays a lump sum or a series of premiums in return for regular income payments, often to provide retirement or survivor benefits [2] Typical examples include regular deposits to a savings
Annuities - A brief description - Internal Revenue Service An annuity is a contract that requires regular payments for more than one full year to the person entitled to receive the payments (annuitant) You can buy an annuity contract alone or with the help of your employer
What is an Annuity - Annuity. com If you’re asking, “what is an annuity?” you are looking for a way to add security and predictability to your financial future This powerful insurance contract is designed to do exactly that: protect your hard-earned savings and turn them into a guaranteed income stream for life *
What are annuities and how do they work? | Prudential Financial Annuities are insurance products designed to provide you with regular income—often for life Many also have investment components that can potentially increase their value (and your income)
What is an Annuity: Types, Retirement Benefits and Uses | TIAA What people ask us What is an annuity? An annuity is a contract between you and an insurance company A retirement annuity is designed to help you save for retirement During your working years you contribute money to your annuity account
What is an Annuity, and How Does it Work? - Guardian An annuity is a contract between you and an annuity provider which states that — in return for your lump-sum investment or premium payments — you are guaranteed to receive a certain amount of income over a specific period or for the rest of your life