As previously discussed, when it’s time to buy an annuity, you have the choice between an immediate and deferred annuity.
If you prefer an immediate annuity, you’ll make a lump-sum payment. Within a year of the contract, the insurance company will begin issuing you a monthly income—which can either be for a specified number of years or for the rest of your life. And, the payment amount will be based on factors like your age.
