Variable Deferred Annuities*
A type of annuity in which the account balance may fluctuate based on the value of underlying investments such as stocks and bonds is called a Variable Deferred Annuity. The contract owner has the ability to allocate money among several available investment choices. The contract owner, not the insurance company issuing the contract, assumes investment risks including the loss of principal amount invested.
Immediate Annuity
Annuity income is income that a life insurance company pays for a specified number of years. An annuity is not a life insurance policy; it pays out income while you're alive rather than after you die. If you die before the payout begins or ends, your beneficiary will receive what you paid into the plan--in effect, a death benefit.
Income from an annuity is used to provide financial protection against the risk of outliving your income. Annuity income payments are made over a period of time, and you can choose to have them disbursed monthly, annually or at your discretion.
An immediate annuity is different from a deferred annuity because there is no accumulation period. You simply make one or more payments to the insurance company in exchange for the promise of lifetime income payments immediately.
