An annuity is a series of equal payments at regular intervals of time, so examples of annuity are such as regular deposit of money in your saving account, monthly insurance payments.
Also payments of pensions therefore annuity is classified by the frequency of dates of payments so these payments can be made, daily weekly, monthly, yearly or any other interval of time.
Annuity has several different types some are fixed annuity and other is variable which benefit the annuitant at different level, so Fixed annuity.
that provide periodic payments to the investor or annuitant whereas variable annuity is that which changes variably as conditions as if the owner gets lot of profit then he will give greater profit to the investor and if he gets less profit then he will give less amount to their investors so his investors are his partners in good as well as bad conditions.
So question is here who sells annuity? Life insurance companies are big examples of selling annuity payments such as investors invests their money in regular intervals, yearly and investors get the benefit after a long interval of times same as life insurance.
Some people think that annuity is good thing as it provides benefit to many of the persons because persons of the age above 80’s as well as more than 90’s have good annuities because some of them getting income more than 15 % therefore they did not want to skip it.
But many Governments of the world asked to annuity but also asked to sell annuity on regular intervals for the benefit of lump sum for their relatives or dependents as the circumstances changes because it can also benefit in to purchase a more flexible pension income product instead.
So government asked to sell annuity payments in order to obtain highest bidder for cash, then the annuity company pays the buyer the income that you would otherwise have been receiving, in anticipation of you die.