Annuities are classified in different ways using many categories. Some classifications include annuity purpose, tax status, and how the premium is paid.

• Immediate Annuities: You can use an immediate annuity for regular payments for a specified amount of time or for the rest of your life. Immediate annuities are single-payment annuities, considered a large sum of cash that can be used for income for a specific period. These types of annuities are not intended to provide growth or liquidity.
• Deferred Annuities: This annuity will begin payments from a specific date and is usually purchased in payments or sometimes a single payment. These payments are normally made while the insured is working so they can receive payments throughout their retirement years.
• Income Annuities: An annuity that is fixed or variable, paying a certain monthly amount, and usually purchased in a lump sum. Income annuities are normally used to provide a dependable retirement income.
• Variable Annuities: Allow the insurance company to pay periodic payments to you now or at a future date. A variable annuity has the potential to show higher growth but is also at risk from market changes. The performance of variable annuities depends on the investment options selected.
• Fixed Annuities: A perfect annuity choice for long-term investors planning to use it for retirement or savings. They provide fixed interest rate stability and no risk of losing the principal investment. If you are looking for steady and guaranteed growth with a tax-deferred benefit, a fixed annuity might be your perfect choice.