Retirement

Annuity

An annuity is an insurance product that provides guaranteed income for life or a set period. You pay a lump sum or periodic premiums; the insurer pays you back. Fixed annuities guarantee returns; variable annuities invest in sub-accounts.

Example

Pay $200k for an annuity that pays $1,200/month for life.

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Annuity — Definition & Example | Investors Lab | Investors Lab