An annuity is a contract in which an insurance company makes a series of income payments at a regular intervals in return for a premiums you have paid. Annuities are generally bought for future retirement income. Any annuity is the ONLY vehicle that can guarantee to pay an income to last as long as you live. Annuities are neither health nor life insurance policies. They are not savings accounts nor savings certificates. You should not buy an annuity to reach a short-term goal.
The value in an annuity the premiums you've paid, less any applicable charges, plus interest credited. The insurance company uses the value to figure the amount of most of the benefits that you can choose to receive from an annuity contract. Their are many types of annuities as well as ways to fund them. Finding an annuity product that is right for you and your situation and goals can be overwhelming. Contact an annuity professional to help assist you and making you retirement goals happen.