The National Directory of Certified Public Accountants

Ask A CPA - Insurance

What Is An Annuity ?

An annuity is a contract between an insurance company and an individual whereby the insurance company agrees to make periodic payments to the individual for a certain period or for the life of the individual. Generally, a fixed annuity may be right for you if you want to supplement pension and other qualified retirement plan contributions or you want the benefits of tax deferred accumulation or you want to provide a lifelong income for a family member such as a disabled child, regardless of age or you value safety without management worries.

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