An insurance product to help you stretch your retirement dollars.
How it works:
You invest a lump sum and receive a fixed monthly income for life.
Retirees age 60 or older who want current income.
Simple to understand and easy to comparison-shop.
Fixed payouts may not keep pace with inflation.
Monthly payouts of about 7% or more of your initial investment for life.
Once purchased, you can't change your mind.
To see if a deferred variable annuity is a better fit, read Which Type Is Right for You?: Deferred Variable Annuities.