What Are Annuities? 
An annuity is an insurance product . A life insurance policy protects you from dying too soon . An annuity protects you from living too long . Annuities are complex . Basically , in exchange for a sum of money , either immediate or in installments , the company will pay the annuitant a specific amount , normally monthly , for the life of the annuitant . There are many modifications of this basic form . Annuities are taxed differently from other programs . 