Types of Annuities

Not all annuities are created equal. Each type serves a different purpose — guaranteed income, tax-deferred growth, market participation with downside protection, or legacy planning. Our expert-reviewed guides break down how each one works and who it's best for.

Intermediate 13 min read

Deferred Income Annuities: Lock In Higher Future Income Today

A deferred income annuity (DIA) converts a lump sum into guaranteed monthly income starting at a future date you choose — 2 to 40 years from now. Because the insurer invests your premium longer, a DIA pays significantly more per dollar than an immediate annuity. It’s pension-like income you design yourself.

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Beginner 12 min read

Fixed Annuities: Guaranteed Growth With Zero Market Risk

A fixed annuity guarantees a minimum interest rate on your money, protects your principal from market losses, and grows tax-deferred. There are three subtypes — traditional fixed, MYGA, and fixed indexed — each designed for a different savings profile. This guide covers all three.

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Intermediate 16 min read

Fixed Indexed Annuities: Market-Linked Growth Without Market Risk

A fixed indexed annuity (FIA) credits interest based on how a market index performs — but guarantees your account never drops due to market losses. In good years, you earn a portion of the gain. In bad years, you earn zero — not negative. This guide explains exactly how caps, participation rates, spreads, and income riders work.

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Intermediate 14 min read

Immediate Annuities: Turn Savings Into Income You Can’t Outlive

A single premium immediate annuity (SPIA) converts a lump sum into guaranteed monthly income starting within 30 days. You choose the payout option, the insurance company guarantees the payments — for a set period or for the rest of your life, no matter how long you live.

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Beginner 12 min read

Multi-Year Guaranteed Annuities (MYGAs)

Lock in a guaranteed rate with no annual fees and principal protection when held to maturity. The simplest annuity on the market — and today’s rates are near 15-year highs.

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Intermediate 12 min read

QLACs: The Only Annuity That Reduces Your Required Minimum Distributions

A Qualified Longevity Annuity Contract (QLAC) is a deferred income annuity purchased inside your IRA or 401(k) that does something no other financial product can: it removes up to $200,000 from your RMD calculation while guaranteeing lifetime income starting at the age you choose — up to 85.

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Advanced 15 min read

Variable Annuities: Full Market Access, Full Market Risk, Full Fee Transparency

A variable annuity invests your premium in market-based subaccounts with tax-deferred growth. Your account goes up and down with the market — there is no floor. Variable annuities carry the highest fees of any annuity type (2–3%+ per year) but offer full market participation and optional insurance guarantees no other product provides.

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Beginner 12 min read

What Is an Annuity?The Complete Guide

Annuities are contracts with insurance companies that convert your savings into guaranteed income — often for life. This guide covers how they work, the seven main types, real costs, tax treatment, and who should (and shouldn’t) consider one.

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Not sure which type is right for you?

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