Annuity

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning

An Annuity is a financial product that gives you regular payments for a fixed period or for life.

Definition

It is an agreement where you invest money once, and the insurer pays you steady income later, usually after retirement.

Types

  • Immediate annuity
  • Deferred annuity

Importance

Annuities help ensure a stable income during retirement.

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