What Are Immediate Annuities?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Immediate annuities are annuities for which you pay a lump sum up front, in order to get regular payments made back to you over a long period of time. These payments to you begin almost immediately, thus, the name. Immediate annuities are often purchased upon retirement as a source of orderly income during the retirement years.
    Answered on June 6, 2013
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  2. 1492 POINTS
    Jeff Davis
    Insurance Advisor, Lordship Insurance Services, California
    When you look into an Annuity you have a variety of ways to fund it. You can make monthly payments, you can make a lump sum payment and you can make lump sum to start off and add to it. In an Immediate Annuity you can make a lump sum payment, annuitize it and begin to receive monthly payments. People who want to have a steady monthly payment tend to utilize this type of annuity so they can get regular payments from the insurer.
    Answered on June 6, 2013
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