In general terms, annuities allow you to accumulate tax-deferred funds for retirement and then receive a guaranteed income.  This guaranteed income is payable for life or for a specified period of time: generally a term of five or ten years.  Annuities are offered by insurance companies and sold through licensed agents.  Be sure to find a licensed agent to assist you with your annuity questions. 

Some information regarding Immediate Annuities:

1. Immediate Annuities pay owners a determined amount of money on a variety of installments:  monthly, quarterly, annual or semi-annual basis.

2.  The rate for an immediate annuity can be fixed-rate or variable-rate.

3.  A fixed-rate annuity will guarantee you a set income that will not fluctuate.

4.  A variable-rate annuity will fluctuate with the performance of the selected investments your variable annuity is based on. 

5.  The amount you receive will depend on the initial premium deposit, the length of time or "term" of your annuity and the guarantees set forth by the particular insurer.

Find an insurance company and/or licensed agent to help you better understand these variables and determine which type of annuity is best for your financial future and needs.  For example, the fixed-rate annuity is ideal if you want to have the security of a guaranteed interest rate.  However, the variable-rate annuity is preferable if you want to increase your gains as the market potentially grows.