What makes an annuity an annuity is its ability to provide guaranteed, lifelong income in retirement. Some annuities exist to do only that, while others have that as just an option. The former (provides income and income only) is called an income annuity. There are three types of income annuities:
- Immediate annuity (provides guaranteed, lifelong income starting 1-12 months after purchase)
- Longevity annuity (provides guaranteed, lifelong income starting 2-40 years after purchase)
- Qualified Longevity Annuity Contract or QLAC (a longevity annuity purchased with IRA funds starting after age 72)
The other type (has the option but not requirement) to provide income is known as a deferred annuity. There are three types of deferred annuities:
- Fixed annuity or multi-year guaranteed annuity (like a CD, it provides a guaranteed rate of return for a fixed number of years)
- Fixed indexed annuity (investment product that tracks market indices with limits on how much you can gain/lose)
- Variable annuity (investment product using mutual funds with limits on how much you can gain/lose)
Blueprint Income offers all types of income annuities, as well as fixed annuities. The Personal Pension is our flagship product that gives you access to all four with subscription-like funding.