Annuities can be used to help you increase your savings, protect what you've saved, or generate a stream of income. ... Annuities generally fall into two categories: deferred and income. ... Tax-deferred annuities: for
In the United States, an annuity is a contractually executed, relatively low-risk investment product, where the insured (usually, an individual) pays a life insurance company a lump-sum premium at the start of the contract.