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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 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