Are Annuities A Form Of Investment?

Consumers considering life insurance options may also look at annuities as a form of investment.

That would include people who work for the government or are members of the armed forces. There are a number of programs offered by the government, including:

The main difference between the TSP and the other two plans is that TSP is based on contributions made by the policyholder rather than their salary or length of employment. The other two plans are known as defined benefit programs.

Most of the contributions to these annuity programs are made by your agency on your behalf, according to a government website dedicated to the TSP. The website adds that your contributions are mandatory and the amount you contribute is defined by law.

An annuity is an investment option for many consumers, including those who aren’t government workers. However, consumers should consider different types of annuities before choosing one, as some may be tied to more risky investments, such as stocks.

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