What Is An Annuity?

An annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums you have paid. Annuities are most often bought for future retirement income. Only an annuity can pay an income that can be guaranteed to last as long as you live. The word annuity is a Latin word. You can find it in the oldest dictionary you have. Annuity means income. An annuity is neither a life insurance nor health insurance policy. It is not a savings account or savings certificate. You should not buy an annuity to reach short term financial goals. There are several different types of annuities. The word ‘annuity’ of course means income. The word ‘deferred’ means income later. The word ‘immediate ’means inco View the rest of this article