How Annuities Work Annuities are financial products designed to provide a steady stream of income, often for life, making them a popular choice for retirement planning. You pay an insurance company either a lump sum or a series of payments, and in return, they promise to pay you regular income either immediately or at a future date.Annuities come in various types:

• Fixed Annuities: Provide guaranteed payments at a fixed rate.
• Variable Annuities: Payments vary based on investment performance.
• Indexed Annuities: Payments are tied to the performance of a market index, like the S&P 500.

One of the key benefits of annuities is their ability to provide lifetime income, ensuring you won’t outlive your savings. They also offer tax-deferred growth and financial stability, giving you peace of mind as you plan for the future.