annuity contract

An **annuity contract** is a financial agreement between an individual and an insurance company, where the individual makes a lump sum payment or a series of payments in exchange for periodic disbursements over time. These contracts are commonly used as a retirement income strategy, providing a steady stream of income either immediately or at a future date. Annuity contracts can vary in type, including fixed, variable, and indexed annuities, each offering different levels of risk and return. This tag covers topics related to the terms, benefits, types, and considerations of annuity contracts.