Financially.site – Annuities are financial products that provide a steady stream of income over time, offering a sense of financial security, especially during retirement.
In this comprehensive guide, we’ll delve into the world of annuities, discussing their benefits, types, and considerations when choosing the right annuity for your needs.
What is an Annuity?
An annuity is a contract between you and an insurance company that provides regular payments in exchange for an initial investment.
These payments can be made for a set period or for the rest of your life. Annuities can be an essential part of a retirement strategy, providing a predictable income stream.
How Annuities Work
When you purchase an annuity, you make an initial investment, either as a lump sum or through periodic payments. In return, the insurance company agrees to provide regular payments to you, either immediately or at a future date.
Annuities can offer various payment options, including fixed payments or payments based on the performance of an underlying investment.
