Types of Annuities

There are many different types of annuities and financial institutions and life insurance companies are constantly introducing new types of annuities. However are there four main different types of annuities:

• Fixed annuities,
• Variable annuities,
• Market Value Adjusted annuities, and
• Immediate annuities.

Life insurance products and annuities products often are referred together. This is because an annuity is a life insurance product even though it contains some elements of investments. Different types of annuities are often sold by life insurance companies.

For many investors, annuities is a difficult concept to grasp because it involves so many life insurance rules, unlike straight investments. Investments in an annuity account are also not as easily accessible as regular investment accounts. Changes in investments within an annuity account are much more difficult to accomplish.

Annuities are long term investments just like life insurance products. It is very difficult to get out of an annuity without paying some hefty penalties to the life insurance company that issued the annuity and taxes. So, do some research to compare different types of annuities before you buy one. If you are not sure about an annuity product, do not buy it until you are sure.

Advantages and disadvantages of different types of annuities

All four different types of annuities have their strengths and weaknesses. If you are interested in buying annuities, compare different types of annuities before you choose one as one of the four types of annuities will most likely be better for you in your situation than the other three.

To continue to the comparisson chart of these four different types of annuities:

• Compare annuities
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