Annuities can play a vital role in your income during retirement or other incidents. An annuity is a payment that is paid for through a lump sum or a series of installments. This agreement is made through you and the insurance company. It provides a steady stream of revenue for a future date or can be disbursed immediately for a set period of time or your whole life. There are three main types of annuities, which include fixed, variable, and indexed. These can be discussed further with a representative from Kotten Insurance.