When you need income you can count on

An immediate annuity is the most basic type of annuity. You make one lump-sum contribution. It’s converted into an ongoing, guaranteed stream of income for a specified period of time (as few as five years) or for a lifetime. Withdrawals may begin within a year.

Learn more about immediate annuities

What are the benefits?

Tax advantages

Its tax-deferred status allows you to benefit from compounded growth.

Also, if you fund your immediate annuity with money you’ve already paid taxes on, you’ll have a source of income that’s partially tax-free.

Immediate income

You begin receiving guaranteed payments after the first year.

Customized guaranteed income

Create income for either one or two people for a specific period of time or for life.

Income steadiness

On some products, for an additional cost, you may opt for a cost-of-living adjustment (to protect against inflation) or a liquidity feature (to allow lump-sum withdrawals in the event of a financial emergency).

What should you consider before purchasing?

Designed for income security

This product may not be right for you if you:
  • Have enough income to maintain your cost of living and don’t need income security or
  • Have little retirement savings and need immediate access to cash


To offset inflation, this feature automatically increases your annual payment amount by 1%, 2%, 3%, 4% or 5% compounded annually.

Annuity resources

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Visit our library of annuities articles in the Learning Center.

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Learn about the features and benefits offered by the different annuity types.

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An annuity is a contract you purchase from an insurance company, designed for long-term investing. The values will fluctuate based on investment option performance. Annuities have restrictions and limitations, and fees and charges will vary based on the product. You may be charged a penalty if you take your money out early. Withdrawals may be subject to ordinary income taxes, and if you are under age 59½, you may pay a 10% federal tax penalty. Please remember that investing involves risk, including possible loss of principal. All guarantees and protections are subject to the claims-paying ability of the issuing insurance company.