An annuity is a product that provides a stream of income payments. But did you know that the word annuity is actually multi-faceted? It can refer to a variety of products and income streams, each with its own unique features and benefits.

For example, some annuity products guarantee that you won't lose a penny when the market or indices fall, and have no internal fees. Others are directly invested in securities and carry market risk and applicable fees. There are also actuarial income streams, which are something completely different.

However, when people say the word, "annuity," today, they are usually referring to insurance products that offer a stream of income payments through a contractual agreement with an insurance carrier. These annuity insurance contracts specify all interest calculation methods, ensuring that you know exactly what you're getting.

So, while the word, "annuity," can mean many different things, over 90% of the time people are referring to annuity insurance contracts, not simply an actuarial income stream. We hope this helps clarify what an annuity is and what it can do for you!