Annuities may seem complex. In reality, they’re very straightforward—like a warm and delicious pizza. All variations of pizza contain the following basic structure; crust, sauce, cheese, and toppings. As for annuities, it’s nothing more than a contract between you and an insurance company. In exchange for premium payments, you’ll receive payments at a future date. Usually, this is either on a monthly, quarterly, semi-annual, annual basis, or in lump-sum.
But, just like when ordering a pizza, there are different types of annuities. Do you want New York or Chicago style? Are you more of a Sicilian or Neopolitan fan? Your answers will depend on your palette or even geographical location.
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