Personal Finance Infographics

How the Different Types of Annuities Works

An annuity is a series of periodic payments that a person gets either for a set number of years or for the rest of your life. These payments may come from your company, an insurance company or from government pension. Annuities are generally used to generate a long-term retirement income. You have different investment choices when it comes to buying an annuity, from conservative to potentially risky option. Learn how fixed annuities, indexed annuities, variable annuities and riders works on this graphical guide. See also Which Life Insurance is the Best for Me?

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  • Simon

    Agents sell Annuities as “investments.” They aren’t. They are more like an insurance policy than an investment. You buy an annuity for the steady paycheck you receive every month regardless of what happens in the stock market.

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