What is an annuity?

An annuity is a product sold by insurance companies that allow you to accumulate money tax deferred. Then you can choose to receive the payments from the annuity for a fixed period of time such as five or ten years, or for the life of you or your spouse. There are a variety of methods to buy annuities, there are various interest rates while accomulating value and there are a variety of payout methods.

The combination of payments, interest rates and payouts can be customized to meet your specific needs.

The most common annuities are:

• Immediate annuities
• Variable annuities
• Deferred annuities
• Equity indexed annuities
• Fixed annuities

One of the best way of determining which annuity is right for you is to get the sound advice of a knowledgable advisor. Click here if you are ready to find out which annuity is best for you.