An annuity is a financial product that provides a series of regular payments to an individual over a specified period of time. It is essentially a contract between an individual and an insurance company, where the individual pays a lump sum or a series of payments to the insurance company, and in return, the insurance company promises to make regular payments to the individual, either immediately or at a future date.
Annuities are often used as a retirement income stream, as they can provide a steady source of income for a fixed period of time or for the remainder of an individual's life. Annuities can also offer tax advantages and can be used as a way to transfer wealth to beneficiaries. There are several different types of annuities, including fixed, variable, and indexed annuities, each with its own set of features and benefits. There are several different types of annuities, including fixed, variable, and indexed annuities, each with its own set of features and benefits- you can find out more information here.
