An annuity is a financial product that is typically sold by insurance companies as a way to provide regular income payments to an individual or couple.

An annuity is essentially a contract in which the individual or couple makes a lump-sum payment or a series of payments to the insurance company, in exchange for guaranteed income payments at a future date or series of dates.

The amount of the income payment is usually based on factors such as the amount of the initial payment, the length of the annuity period, and the age and health of the annuitant(s).

Annuities may provide a useful way to ensure a steady stream of income during retirement, but they also involve various fees and restrictions, so it is important to fully understand the terms and conditions before purchasing an annuity.