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What is an annuity?

 

 

What is an annuity?

The Bankrate.com financial term of the day is: "annuity."

Want to feel more secure about your retirement? Setting yourself up with some regular and reliable income might help, and one way to do that is with an annuity. You hand over money now to a financial institution, often a life insurance company. In exchange, it agrees to make periodic payments to you, either beginning right away or at some point in the future, such as when you retire.

With an annuity, you can guarantee yourself some cash flow once your work years have ended.

To shop for insurance to fit your needs, visit the Insurance section at Bankrate.com.

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