An annuity can be a helpful tool to help you plan for financial growth and maintain a stable income. Annuities are most often bought for retirement income. In exchange for your payment of a premium, the insurer gives you a financial contract promising to make a series of periodic benefit payments at regular intervals. These payments generally begin once you retire or pass age 59 1/2.

  • While annuities are typically sold by a life insurance company, annuities are not life insurance and do not provide life insurance protection.
  • They are not savings accounts or savings certificates, and you should not buy an annuity to reach short-term goals.