​​WHAT IS AN ANNUITY?

An annuity is a contract between a purchaser and an insurance company in which the purchaser agrees to make a lump sum payment or series of payments in return for regular disbursements, beginning either immediately (within 12 months) or at some future date. The goal of most annuities is to provide a steady stream of income during retirement for a specified period of time or for the remainder of one or more lives. The lives on which payments depend are called annuitants. The purchaser is often the annuitant and the person to whom periodic payments are made.

There are two basic kinds of annuity contracts: immediate and deferred.
  • Immediate Annuity. An immediate annuity is an annuity contract in which payments start within 12 months of the date of purchase. The immediate annuity is purchased with a single premium and periodic payments are generally equal and made monthly, quarterly, semi-annually or annually.
  • Deferred Annuity. A deferred annuity is an annuity contract in which periodic income payments are not scheduled to commence for at least 12 months. Periodic payments are deferred until a maturity date stated in the contract or, if earlier, a date selected by the owner of the contract.

This is only a summary and you should consult with a licensed insurance professional before deciding on the amount and type of Annuity policy to purchase.

We can provide you with Fixed, Immediate and Index Annuity Quotes from most insurance carriers.
​