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What Is an Annuity?

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From Quick Guide: Overview of Annuity

Summary: An annuity is an insurance instrument that insures retirement. Learn about annuities with information from a registered financial consultant in this free financial planning video.

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By Patrick Munro
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Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more

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Video Transcript

"I'm financial adviser Patrick Munro talking to you today about what is an annuity? An annuity is one of the oldest financial instruments available out there to anyone to participate in. An annuity is also the safest vehicle that you can get as well. It's an insurance instrument, and many people have their houses insured, their cars are required to be insured as well. You can insure your retirement. It's an opportunity for you to put money into the hands of an insurance company for safe keeping and it'll be available for you at a future date. Annuities are common in the form of company pensions. When someone works for a county municipality, or company for a long period of time they accumulate a large amount of money and when they retire that money becomes available in a monthly check to them. It's a payment to them that always arrives without fail. If you win the lottery and you don't take the lump sum they'll pay you in a series of payments. That's also an annuity. So annuities are very common although a lot of people don't know that they're actually working out there. It's one of the very safest vehicles that you could possibly have, especially in these challenging economic times. This is financial adviser Patrick Munro telling you about annuities."

eHow Article: What Is an Annuity?

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