What is an annuity? To understand how they work first you need to understand what an annuity is. In simplest terms, an annuity is designed as a long-term investment that grows tax-free (or tax-deferred) and can help you not outlive your income. It’s a contract between yourself and the insurance company that you choose for your annuity. You can either make a single lump-sum payment to the company or a series of payments over some time. If you have questions about this, we are here to help. Now that we’ve got the basics out of the way, there are three main types of annuities to choose from: fixed annuities, indexed annuity, and variable annuities. Fixed Annuity: Fixed annuities by design help you reach your goals
