An
annuity contract is a legal agreement between an individual and an insurance company. It works like a savings account or a pension plan. The person agrees to give a certain amount of money to the insurance company, either as a lump sum or regular payments. In return, the insurance company promises to pay the person a regular income, usually for the rest of their life or for a specific period of time. So basically, an
annuity contract is a way to save and get a guaranteed income in the future.
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