immediate annuity
An annuity contract where the insurance company begins sending you regular payments right away, rather than waiting years to start.
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Words beside it
- Annuity
A contract with an insurer that pays you a stream of income; simple ones are cheap, complex ones often are not.
- 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.
- 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.
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