Annuities
An annuity is a contract between you and an insurance company that is designed to meet retirement and other long-range goals, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Alternatively, you may choose to withdraw your contract’s value as a lump sum payment, although doing so may subject you to surrender charges, taxes, and tax penalties.
Concept at a glance
Definition and explanation
An annuity is a contract between you and an insurance company that is designed to meet retirement and other long-range goals, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Alternatively, you may choose to withdraw your contract’s value as a lump sum payment, although doing so may subject you to surrender charges, taxes, and tax penalties. [1]
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Frequently asked questions
What does Annuities mean in the cited reference?
An annuity is a contract between you and an insurance company that is designed to meet retirement and other long-range goals, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Alternatively, you may choose to withdraw your contract’s value as a lump sum payment, although doing so may subject you to surrender charges, taxes, and tax penalties. [1]
Annuities connection map
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Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.