Annuities What is an annuity?An annuity is a contract between an insurance company and an annuity owner. In exchange for a purchase payment, or series of payments, the insurance company guarantees* to pay a stream of income in the future.Who needs an annuity?Annuities are designed to help individuals convert assets into a stream of guaranteed* income.What are the different types of annuities?Immediate AnnuitiesAn immediate annuity begins a stream of income within 12 months from the date of issue. You decide when payments will begin within that period and how long you want to receive income.Deferred AnnuitiesA deferred annuity is a long-term product designed to help you accumulate assets for retirement over a longer period of time. It also offers the ability to turn those assets into a stream of guaranteed* income at some point in the future. You decide when payments begin and how long to receive income.*Guarantees are based on the claims-paying ability of the issuing company.