# What is annuity with example?

**annuity**is a series of payments made at equal intervals.

**Examples**of

**annuities**are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments.

**Annuities**can be classified by the frequency of payment dates.

Likewise, people ask, what is an example of an annuity due?

**Annuity due** is an **annuity** whose payment is **due** immediately at the beginning of each period. **Annuity due** can be contrasted with an ordinary **annuity** where payments are made at the end of each period. A common **example of an annuity due** payment is rent paid at the beginning of each month.

Likewise, what are the 3 types of annuities? There are five major categories of **annuities** — fixed **annuities**, variable **annuities**, fixed-indexed **annuities**, immediate **annuities** and deferred **annuities**. Which is best for you depends on several variables, including your risk orientation, income goals, and when you want to begin receiving **annuity** income.

Also know, what is a annuity and how does it work?

An **annuity** is a long-term investment that is issued by an insurance company designed to help protect you from the risk of outliving your income. Through annuitization, your purchase payments (what you contribute) are converted into periodic payments that can last for life.

What are the 4 types of annuities?

**There are four main types of annuities:**

- Immediate annuities.
- Deferred income annuities.
- Fixed annuities.
- Variable annuities.