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Classification of Annuities

Annuities are flexible in that there are a number of classifications (options) available to the purchaser (contract holder/owner) that will enable him or her to structure and design the product to best suit his or her needs. Those options are:

  • Purchase Options
  • Date Annuity Benefit Payments Begin – Deferred or Immediate
  • Investment Options – A fixed (guaranteed) rate of return, an index annuity (a fixed annuity with potential increase of interest credited based on a stock index), and a variable (non-guaranteed) rate of return.
  • Payout Option – A specified term of years or for life, or a combination of both.


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