Annuities are a stream of pre-determined payments over a particular interval with the simplest form being a right away pay annuities. Annuity is just not actuarially sound as cost spans a period of 10 years and life expectancy is 5 years. They’re paid for a term of years, regardless how long the investor lives which makes annuities not a brief-term investment choice. It’s an investment vehicle between an investor and an insurance company as a contract between the client and the insurance firm. Annuities are neither a life insurance nor a health insurance coverage, but an insurance instrument that insures retirement that pays out revenue, and can be utilized as part of a retirement strategy.