This video discusses how an insurance company manages it's income distribution in a fixed index annuity and a variable annuity, both of which are important tools that retirement income planners look to as conservative investments.
An annuity is a distribution of money earned on an investment on a set schedule such as quarterly, biannually, or annually. Typically, an annuity is used as part of a retirement plan, to ensure a fixed and stable income once the annuitant, or recipient, stops working, and an annuity may be designed to provide income for two. A common form of annuity is a retirement pension. While the retiree was working, he or she paid into a pension fund which was invested. After retirement, the return on the investment takes the form of an annuity distributed to the retiree.
