Annuities are insurance products that pay you a guaranteed regular income for a fixed term or the rest of your life.
Payout annuity income payments consist of a blend of interest and principal based on:
>> Your age and gender (and in certain cases your spouse¡¯s age)
>> Current interest rates
>> Length of time the payments are guaranteed
>> Amount of money used to purchase the annuity
>> Type of annuity
Normally, payments are fixed, but if you are concerned about inflation, you may choose to have annuity payments indexed.