Annuities are very complex and they come in several different forms, but when you boil it down, they’re an insurance product. These tax-deferred investments sold by insurance companies allow you to grow your nest egg and then, when you’re ready to retire, trigger an income that you can’t outlive.

Fixed Annuity: A fixed annuity takes your contribution and the insurance company invests it. Once you trigger the income stream, called annuitization, a fixed dollar amount is paid to you.

Immediate Annuities: This type of annuity is when payments start as soon as you make the initial investment.

Deferred Annuities: The investment made is held for an allotted period and is not released until you are ready to make the withdrawals.

Annuities are typically purchased between the ages of 45 and 55. This should be around the age span of when most tend to retire or start to plan for retirement.

Yes, you can have lifetime payments. This is what most people choose when picking a plan. Lifetime payments ensure that you will not outlive your assets.

It depends if you choose to have set payments or variable payments. If you have set payments, then they evenly distribute the money you have invested in the annuity. However, if you have chosen a variable payment, payments will be monitored and protected to help ensure that with costs rising and interest rates fluctuating, you will be allotted with the correct amount.