There are three types of annuities: fixed interest, fixed indexed and immediate.
A fixed interest annuity helps you accumulate funds for retirement. The money in your annuity earns a guaranteed fixed interest rate. Plus, your money accumulates tax deferred, which means you don't pay income taxes on earnings until you actually withdraw them from our policy.
A fixed index annuity has the same guarantees as a fixed interest annuity, but it offers an additional opportunity to earn interest based on the performance of a market index. You're not actually participating in the market, so the money in your annuity is never at risk of decreasing.
An immediate annuity is purchased with a single lump-sum payment. In exchange, the annuity pays you a guaranteed income stream that can begin immediately.