Annuity insurance
An annuity insurance is similar to a life insurance in some of its characteristics and is usually issued by insurance companies. The policy pays a fixed rate of interest on a monthly or an annual basis for a set number of months or for life.
There are two basic types of annuities, fixed and variable. Fixed annuity pays a fixed amount for a set period, whereas variable pays according to the sucess of your investments. An annuity could also be used to cover two people, such as a husband and wife, which keeps on paying if one of them dies. If requested, payments could be made in a single sum, paid directly to the beneficiary.