Annuity
A contract with an insurer that pays you a stream of income; simple ones are cheap, complex ones often are not.
Where it is explained in full
Money at every level: what changes as the numbers grow, from a first paycheck to a hundred million. The rules are the same for everyone and the useful ones change at every level. This page walks the whole ladder, what becomes possible at each rung, and the one line that runs through all of it. It explains; it never advises.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- deferred annuity
An annuity contract where the insurance company holds your money and begins sending you regular payments at a future date you choose, rather than right away.
- fixed annuity
A fixed annuity is an annuity where the insurance company promises your money will grow at a set interest rate. It is the simplest kind because the rate does not change with the market.
- immediate annuity
An annuity contract where the insurance company begins sending you regular payments right away, rather than waiting years to start.
- indexed annuity
An indexed annuity is an annuity whose growth is tied to a market index like the S and P 500, but with limits on how much you can gain or lose. It sits between a fixed annuity and a variable one.
- variable annuity
A variable annuity is an annuity where your money goes into investment choices that can rise or fall in value like a stock fund. Your payments depend on how those investments do.
Ask about Annuity
A model reads this page and answers from it. It will say when the answer is not on the page. Education, not personalized advice.