An annuity is a contract that provides regular payments from an insurer over time, typically for life, to ensure a consistent income stream after retirement and protect against financial risk. It offers various types, including lifetime income, capital refund options, inflation adjustments, and payouts over a guaranteed period. This financial strategy allows individuals to secure their basic living expenses and potentially support their loved ones.

1. Annuity

2. What is an annuity?
• An annuity is a contract in which an insurer pays you a set sum on a regular basis
over an extended period of time, typically a lifetime. This payment is in place of
one you would have made in one lump sum. Annuities are designed to deliver a
consistent income stream after retirement. It is a strategy for protecting your
retirement years from financial risk, ensuring that your savings won't be
jeopardized and that you won't have to take on debt to maintain your standard of
living
• The annuity plan does not specify a specific retirement age; you can choose to
opt for an annuity plan and begin receiving benefits as early as 40 or 45. The plan
guarantees you an annuity for the rest of your life, and by choosing a joint-life
annuity option, you can also make sure your spouse is protected. The primary
advantage of an annuity is locking in rates for a lifetime even if interest rates are
always changing. As a result, you can retire stress-free knowing that the annuity
plan will take care of your basic necessities.

3. How different types of annuities work
• Lifetime Income: As long as you remain alive, this sort of annuity offers you
consistent payouts (annually, quarterly, or monthly). When you die, the payouts
stop.
• Lifetime Income with Capital Refund: You receive the payouts in this case as long
as you live, too. The insurer pays your nominee the initial investment sum after
your passing. This is the sum you forked over to buy the annuity plan. Similar to
life insurance, this enables you to leave something for your loved ones.
• Lifetime Income with Annual Increase: This kind of annuity raises the payable
amount by a certain percentage, such as 2% or 4%, to adjust for inflation. Even
though it might not accurately represent national inflation rates, it helps you deal
with potential expense increases.
• Lifetime Income with Certain Period: This means that the payouts will be made
to you over a set length of time, such as 5, 10, 15, or 20 years. When the
guaranteed period is up or the annuitant passes away, payouts will stop.

4. Thank You