All annuities contain some similar characteristics.
They all involve the investment of a lump sum amount in return for a series of regular payments. However, the word annuity is rarely used in isolation. The range of products includes term annuities, deferred annuities, lifetime annuities and allocated annuities. Each one contains different characteristics that completely change the type of product being considered. It's no surprise that the general public gets confused when trying to decide which product is right for them.