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>  Receive Stable, Monthly Income forLife
 >  Limit Market Risk & Retire with Confidence
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It’s a good thing to discover what is annuity and how you can always gain from it. If you’re not properly informed about annuity, you’ll certainly be deformed. There’s always the need to discover what the subject of annuity is and how you can go about benefiting from it.

In simply language, annuity is a contract between you and an insurance company. You simply invest your lump sum in the company while the company pays you a certain amount of income on an agreed date.   In most cases, annuities are meant for ensuring steady flow of income during retirement.  You don’t need to wait until you retire before you start investing in annuity. There’s always the need to prepare ahead of time before you retire.  Oftentimes, retirement doesn’t announce its arrival. It can come upon you at any time. You must be adequately prepared to face the financial challenges that come with such period.

In getting to know what is annuity, you need to explore its various kinds. Basically, there are three kinds you must know. They include fixed annuity, equity index annuity and variable annuity. Each of them has its pros and cons. You need to discover a lot about them before you invest.

There are also two major categories of annuity. They include immediate annuity and deferred annuity. They are seen in the three major kinds of annuity mentioned above.  A variable annuity can be immediate or deferred. A fixed annuity can also be immediate or deferred. The same scenario applies to equity index annuity.

Basically, immediate annuity of whatever form will always give you the opportunity of receiving income payment regularly once you’ve made the initial purchase payment. You can start receiving the income payment right from the very first month. You also have the freedom to choose when to receive the payments on regular basis.

On the other hand, deferred annuity gives you the room to allow your investment to grow over a period of time.  You simply watch the investment increase in leaps and bounds.  The income payments are usually made on a future date. You can decide to receive payments after so many years when your investment must have grown.

Again, there’s also another investment option in annuity. It’s known as Lifetime annuity.  This kind of annuity gives you the opportunity of receiving payments all through your lifetime.  The payment may even continue after your death. Your beneficiary will keep on getting the payment   as agreed. However, you’re no longer going to have the initial purchase payment back. It belongs to your insurance company.

From the above, you must have known a lot about what is annuity.  However, you shouldn’t stop there. You still need to take some time to make proper inquiries as regards the insurance company to work with. There are many of them in every state of the US. You need to check the various offers such companies have and how best to benefit from that.  You can gain more when you engage the services of a reliable financial adviser to assist you.