What are annuities and how do they work? - Fidelity Investments What is an annuity? 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 They can also be a boost to the conservative part of your portfolio by
What Is an Annuity? Definition, Types, and Tax Treatment What Is An Annuity? An annuity is a contract purchased from an insurance company with a large lump sum in return for regular payments, commonly used as an income source in retirement An annuity
What Is An Annuity? – Forbes Advisor An annuity is an insurance contract that exchanges present contributions for future income payments Sold by financial services companies, annuities can help reinforce your plan for retirement
What are annuities and how do they work? | Prudential Financial Annuities are insurance products that give you reliable retirement income Many also have investment components Knowing how they work and different annuity types lets you maximize your income