When you consider the term Annuity, it’s really gotten from the Latin word which is “annus” – a medium of investment that’s like the Certificate of Deposits that banks offer. In rather simple terms, income is annuity.

On a broader definition, annuity is a contract that guarantees a sequence of payments in exchange for a lump sum savings. Many people that buy annuities have it at the back of their minds that the annuities could turn out as source of income for them when they retire.

But don’t forget that an annuity isn’t the same thing as a life insurance or a health insurance policy. Also, don’t join those who continue to think that annuities are the same as savings accounts; they are completely different.

Annuities are mainly for long term financial goals, not short term. Annuities on the other hand are mainly for the purpose of building up stable wealth for the future.

There are several kinds of annuities no doubt, but the types that are common to many people are the variable and the fixed types of annuities. By “fixed” annuity this certainly doesn’t mean it’s “fixed interest”; what it means instead is that the premium of the individual earns a certain minimum guaranteed interest rate.

The type of annuity where the premiums of members vary up and down is the “variable” annuity. Don’t rush into annuities investment until you have learnt all there is to learn about this type of investment.

In conclusion, you can get all the helpful advice you need from trusted sites on the Internet or from trusted insurance agents.
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About The Author:

KerryJohn has been publishing articles online for nearly 2 years now. Not only does this author specialize in annuity, you can also find out his latest website on mafia wars cheats which reviews and lists information about mafia wars guides.

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