Simply, an annuity is a periodic payment to stop at a specific time or date but continue throughout a fixed period. The income paid out may be received annually, semiannually, quarterly and monthly. It depends on the agreement and most chose a monthly payment.Read More
But by its design an annuity works a little differently. An annuity offers guaranteed income for life, if you choose it to work that way. And you invest money into it same as you would any other money market account, like a 401k.
This is particularly likely for women, according to a recent report by New York Life Insurance Company, who traditionally endure a significantly longer retirement than men despite weathering the same economic conditions beforehand. The company said that women accounted for 64 percent of customers with fixed immediate annuities in 2009.
Classification of annuities cover the number of lives covered, time when payments commence, method of premium payment and nature of the insurer’s obligation.Read More