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Annuities 

"What is an Annuity?"

An annuity is an insurance contract issued and distributed by financial institutions and bought by individuals. An annuity requires the issuer to pay out a guaranteed income stream to the purchaser, beginning either at once or at some time in the future.

People invest in or purchase annuities by making monthly premium payments or lump-sum payments. The holding institution issues a stream of payments for a specified period of time or for the remainder of the annuitant's life.  

​Annuities are mainly used for retirement income purposes. They can help individuals address the risk of outliving their savings.

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