What it Is:
An annuity is a form of insurance that provides a person with an income for a lifetime, a specific period, or a combination of the two. A Fixed Guaranteed Annuity provides a guaranteed income stream without any market risk. Other kinds, such as the Indexed and Variable annuities, carry market risk. Because of this, Life Benefits only sells Fixed Guaranteed Annuities.
Annuities can be started with a lump sum or through a series of payments which accumulate value while income from the annuity is deferred.
Who is it for:
Annuities are for people who need to convert a lump sum of assets into a series of guaranteed payments or need a steady, guaranteed income for a period of years. They are often used by people in retirement to provide a guaranteed income stream for their lifetime.