There are different types of annuities, dependent on: how the money is paid in; withdrawn and how it is invested. The most basic ones are: single-premium (where you make the investment in one go); flexible-premium (series of payments); immediate (payments begin once annuity has been funded – popular with retirees); deferred (receive payouts a long time after contract is issued either in payments or a one-time sum); fixed (funds are placed in a low-risk fixed income investment, i.e., a bond); variable (higher risk than fixed annuity enables client to decide how money should be split among different managed funds).
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