Lux - Illumination

What’s An Annuity?

An annuity is issued by an insurance company, which makes regular payments to a person (the “annuitant”) and sometimes a second person (if the first person dies), often as a result of settlement from a personal injury lawsuit (structured settlement). Annuities have been in existence in the United States for hundreds of years; the first mention of annuities in the U.S. was from the Presbyterian Church in 1740, which the church used to provide security for widows and clergy.