When you retire, you may not have enough money to provide for your monthly needs from savings. So there are companies that turn a supply of money — you typically need a minimum of $100,000 — into a lifetime stream of income.
Immediate payout annuities (also called life annuities) are entirely legitimate, but they have so little in the way of commissions that they’re never pushed by salespeople. You can get a quote for an immediate annuity from ImmediateAnnuities.com. If you have military service, you’ll also want to get a quote from USAA .
Whatever you do, make sure you stick with an insurer who is rated A++ by A.M. Best. An A++ rating indicates the utmost financial strength and that the insurer will be there for the long haul.