What Is An Immediate Income Annuity? 
That is a great question ! Unlike most annuities , which ask you to take a large sum of money , invest it , and sit back for a number of years before receiving the payouts , an immediate annuity is just that - one that starts paying out very quickly . In this type of annuity , you take a large sum of money -LRB- a settlement , inheritance , or just a big wad of cash -RRB- and invest it in the annuity , which then starts structured payments anywhere from 1-11 months later -LRB- Payments must start within the year from the point you purchased it -RRB- . I hope that helps , thanks for asking ! 