What Is A Fixed-Term Annuity?

First, you might want to find out what is an annuity? There are generally two types of annuity, a lifetime annuity and a fixed-term annuity.  A fixed-term annuity will pay an income for a set period, usually five or ten years, and then a ‘maturity amount’ at the end that you can use to buy another retirement income product or take as cash.