An insurance-like, financial contract that guarantees a series of later payments in exchange for a lump-sum deposit paid up front.
Annuity payouts may include a minimum death benefit amount, last for a definite period of time, and may be issued monthly, quarterly, semi-annually or annually. Alternately, they may span an entire lifetime—either the insured’s or the beneficiary’s. Meanwhile, future earnings grow tax-deferred.
Along with Social Security, 401(k) monies, IRAs, pensions and other assets, annuities can enhance retirement security. Discuss the annuity option with an insurance professional when planning for??retirement years.