What Does Immediate Annuity Mean? 
An immediate annuity is an annuity where you give a single lump-sum payment and , in exchange , the insurance company pays a guaranteed income for a number of years -LRB- there are options to choose from - some can go for only a set number of years , others can go for life -RRB- . The payments start immediately -LRB- typically the first month following the month the annuity is placed in force -RRB- . Immediate annuities are great for seniors who are concerned about outliving their life savings as it provides a guaranteed income . I hope the information is helpful - please feel free to contact me for help and if you have any other questions . Thanks very much . 