Income Annuity

An income annuity pays holders a fixed, guaranteed income stream for life or over a fixed term that is not subject to market volatility or performance. Income annuities come with a variety of options. Holders can, for example, buy an annuity from an insurance company to cover essential expenses in retirement or an amount covering all of their income needs; they can come with annual increases to take account of inflation; or provide protection for beneficiaries. Fixed lifetime income annuities will continue to pay income to holders until death and can start at the time of purchase or at a future date selected by the holder.