Some examples of annuities are:
1) Fixed annuities that provide a minimum guaranteed return
a. Fixed Immediate Annuities (you put in a lump sum and immediately start collecting payments)
b. Fixed Deferred Annuities (you put in periodic premiums, then start receiving payments later)
2) Variable Annuities whose returns are based on the market
3) Indexed Annuities whose returns are based on a specified equity-based index
There are two basic approaches to non-qualified annuities: immediate and deferred. Ideally, annuities should be considered ultimately as an income product. Single premium immediate annuities can generate income over a guaranteed and fixed period like 10 and 20 year certain. They can also be annuitized for the life of the annuitant. Their crediting method uses a combination interest rates and mortality credits. Non-qualified deferred annuities have crediting methods that include interest rates, indexed and separate sub accounts in variable deferred annuities.
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1) Fixed annuities that provide a minimum guaranteed return
a. Fixed Immediate Annuities (you put in a lump sum and immediately start collecting payments)
b. Fixed Deferred Annuities (you put in periodic premiums, then start receiving payments later)
2) Variable Annuities whose returns are based on the market
3) Indexed Annuities whose returns are based on a specified equity-based index