Provides returns based on a stock market index with a "floor" to protect against losses, though upside is usually capped. 3. Evaluate Pros and Cons When do annuities make sense | Retirement - Aviva
Annuities are categorized by when they pay out and how they grow: buying an annuity
accumulate value over a period before starting payouts at a later date. Growth Mechanisms: Provides returns based on a stock market index
begin paying income almost immediately (within a year) after a single lump-sum payment. buying an annuity
Offers a guaranteed interest rate and predictable payouts.
Returns are tied to market-linked subaccounts (like mutual funds), offering higher growth potential but also the risk of losing principal.