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Individuals generally are familiar with life insurance products and the basics. Professionals are contacted by the big life insurers with offers to buy term life or whole life products, and many employers offer employees some basic form of group life insurance. Others have obtained burial and funeral expense coverage life policies. When it comes to the world of annuities, people often are not as familiar. In this first of a series of posts, we will explain the world of annuities. Today, Annuities 101: an introduction.
The word annuity is derived from the Latin, annus, or year, and the Latin, annuitus. The reason for this is because annuities are investments that entitles the holder to equal annual payments.