Chapter 14: Variable & Equity-Indexed Annuities

An annuity is the generic term for a financial product that will make a series of payments to an individual over time. These are known as fixed annuities. The level of payments, the amount of time, and the rate at which payments will increase (if at all) are part of the offer of the specific annuity. They are unique for each individual, but they are based on factors such as how much is invested in the annuity, the annuitant’s health and age (that is, anticipated years of receiving the annuity). Annuities meeting this description
are a source of steady income (cash flow) during a time when the stock market has been very volatile.

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