Overview: Annuities are financial products designed to provide a steady income stream, primarily used for retirement purposes. This lesson will delve into the various types of annuities, their features, benefits, and potential drawbacks.

Key Topics:

1. Introduction to Annuities:

   • Definition and purpose
   • History and evolution of annuities

2. Types of Annuities:

   • Fixed annuities
   • Variable annuities
   • Indexed annuities
   • Immediate vs. deferred annuities

3. How Annuities Work:

   • Premium payments and accumulation phase
   • Distribution phase and payout options
   • Guaranteed income vs. market-linked returns

4. Benefits of Annuities:

   • Income security and predictability
   • Tax-deferred growth
   • Protection against outliving savings

5. Costs and Fees:

   • Surrender charges
   • Mortality and expense risk fees
   • Administrative fees

6. Risks and Considerations:

   • Market risk (for variable annuities)
   • Inflation risk
   • Liquidity and withdrawal restrictions

7. Choosing the Right Annuity:

   • Assessing individual financial goals and needs
   • Comparing annuity products and providers
   • Understanding contract terms and conditions

Learning Objectives:

• Identify different types of annuities and their features
• Understand the benefits and potential drawbacks of annuities
• Evaluate the costs and fees associated with annuities
• Make informed decisions when selecting annuity products
• Integrate annuities into a comprehensive retirement plan