A consumer can deposit money (premiums) with an insurance company so that it can grow tax-deferred and accrue interest, with the understanding that the insurance company will thereafter make a series of payments to the customer at regular intervals.
Annuities are frequently bought by people to augment or provide for the retirement income they will receive through Social Security, pension benefits, investments, and other sources. You can change your annuity into a stream of income that will be paid over a set amount of time or for the rest of your life. When you require the revenue, you can withdraw a range of quantities.