Annuities are financial products designed to provide a steady income stream, typically during retirement. They are contracts between an individual and an insurance company, where the individual makes a lump-sum payment or a series of payments in exchange for regular disbursements in the future. With various types of annuities available, such as fixed, variable, and indexed, they cater to different financial goals and risk tolerances. Understanding how annuities work can help make informed decisions about securing your financial future.