Annuities
A contract issued by a life insurance company to provide a series of periodic payments (stream of payments) to an annuitant(s) for life.
Qualified or Tax Qualified Annuity
Annuity where the investor contributes pre-tax dollars
Non-tax Qualified Annuity
Annuity where after-tax dollars are contributed.
Fixed Annuities
Fixed structure, meaning it pays the same predetermined dollar amount each period.
Variable Annuities
Variable in structure. Premiums paid by annuity holders go into a separate account and are invested according to the annuity holder's wishes. Variable annuities participate in market movements, offering more risk, but the potential for more returns. They are classified as securities.
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