What is an annuity

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What is an annuity
Introduction Basics
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what is an annuity
An annuity is a plan that helps you to get a
regular payment for life after making a lump sum
investment. The life insurance company invests
the money of the investor and pays back the
returns generated from it.
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• Different types of annuities
• Immediate annuity plans There is no accumulation
  phase and the plan starts working right from the
  vesting phase. It is purchased with a lump sum
  and the annuity payment starts immediately either
  for a limited tenure or lifetime.
• Deferred annuity These are the pension plans in
  which the annuity starts after a certain date.