An annuity is bought, at retirement, from a life insurer on the life of the annuitant. The income that will be paid to the investor from the capital amount will be based on, among other things:
- Interest rates
- Whether or not a guaranteed term is selected
- Whether a single life or joint life has been selected
- Life expectancy of the annuitant
No capital can be accessed after the death of the last dying life covered and all income will cease.