An annuity is a contract between you and an insurance company where you pay a premium in exchange for guaranteed income for a set period of time or for the remainder of your life.
The type of annuity that would be most suitable for your financial situation depends on a variety of factors.
For example, are you looking to help offset long-term care expenses or steady, guaranteed income for life? This checklist will define immediate and deferred annuities, including traditional fixed, fixed index and variable annuities and will outline the general descriptions of each.
Most annuities offer options that allow you to withdraw a percentage of your contract value each year up to a certain limit. However, early withdrawals could have consequences. This checklist can help explain some of the possible effects of early withdrawals.