How To Learn Annuities?

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    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    An annuity is a promise to provide a lifetime of payments (usually monthly) in exchange for a single deposit.  The actuary determines from life expectancy tables the estimated payout and after adjusting for interest the premium is set.  This is a single premium immediate annuity.  There are a variety of modifications of this basic concept and they involve the accumulation period.  If instead of a single payment, you want to make a series of payments these different plans offer different approaches.  An annuity has the advantage of accumulating money with the income tax on the earnings being deferred.  
    Answered on June 16, 2014
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