The simplest description of an income annuity is this: It’s insurance against living so long that you outlive your money. An income annuity is the only financial product that offers pension-like income that lasts for the rest of your life.
Figuring out the details of buying an income annuity stops many people from considering one, though. And the current environment of low interest rates has some potential buyers wondering whether an income annuity in one of its many forms is both timely and safe. More