Three types of annuities

There are many different types of annuities, just like they are many different types of life insurance policies.

A life annuity is like a life insurance policy in reverse. When you buy a life insurance policy, your may a monthly premium over a number of years to get a lump sum on the maturity date or on death. When you buy a life annuity, you pay a lump sum and receive a monthly annuity payment over a number of years or until death.

There are three main types of annuity plans. This is explained at www.fisca.sg