Basic Concepts of Annuities
Annuities are insurance industry products. You may think of them as investments with guarantees. The type and amount of guaranty will vary from annuity to annuity. Some companies offer more than one type of annuity product.
Annuities are for retirement income and therefore money withdrawn before the age of 59 1/2 can be subject to a 10% penalty tax on top of your regular income tax.
Annuitized vs. Non-Annuitized
This is the most important thing to know about annuities. Pay very close attention.