Life & Finances



An annuity is an insurance product that is designed to meet long-term financial goals and retirement. When you invest in an annuity, you enter into a contract with your insurance agency and make payments in the form of one lump-sum installment or a series of installments. The income you receive in return can be paid out monthly, quarterly, annually or in one lump-sum payment.

Advantages of Annuities

There are many benefits to investing in annuities as a tool for financial planning. There is great flexibility with annuities as you can choose to receive payments for the rest of your life or for a set period of time. The amount you receive depends on which type of annuity you invest in. The three common types of annuities are as follows: fixed, indexed and variable. With fixed annuities, the insurance agency complies to pay you a fixed interest rate during the period your account is growing. With indexed annuities, the insurance agency accredits you with a benefit that is based on changes in the index. With variable annuities, you are given a choice on how to invest your purchase payments from a range of options. The rate of return and the amount you receive will depend on the type of investment you selected.

For more information about annuities and retirement planning, please reach out to a knowledgeable insurance agent at Nickerson Insurance Services, Inc.

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