Annuity is an integral component of a long-term financial plan. The main purpose of an annuity is to provide the annuitant with a regular income. Annuities are offered by insurance companies. Annuity is a financial contract between an individual and an insurance company, wherein the latter promises to pay a certain rate of return in lieu of the premium/premiums received from the individual.

Annuity can also prove to a good investment vehicle for women. We are aware that the financial requirements of women differ from men. Women tend to outlive men. Hence, at times, the financial cover provided by investments can prove inadequate. Studies have also shown that women tend to have smaller retirement nest eggs as well as lesser social security credits. The main reasons behind these disparities are because of the fact that women tend to earn less than men and many of them stop working to care of their families.

According to Jennifer Sweeney, Director of Public Policy, Business and Professional Women "American women are at a significant disadvantage in retirement. Women live longer than men and are therefore in danger of outliving their savings; they take significant time out of the paid workforce for care giving, thereby affecting their lifetime earnings; and they are paid on average 76 cents for every dollar paid to their male counterparts. You cannot save what you aren't paid.. "Women face a very serious problem that their retirement savings will not be enough to support them during their older years."

Hence, it is necessary that women start investing from an early age. One also has to remember that the amount of money paid to women annuitants is less than that paid to men. This is because women tend to outlive men by at least five years and hence the difference in payment. There are many different types of annuities available; each catering to the varying needs of the investor. Take for instance immediate annuity. Immediate annuities are ideal for women who are about to retire or have already retired and are looking for a regular stream of income. Immediate annuities require you to pay a single one-time premium and you will start receiving payments almost immediately. However, if you're a working professional, then a deferred annuity will be perfect choice.

Deferred annuity allows you to regularly pay premiums and gradually build a retirement nest egg.

You can also choose between fixed and variable annuities. Fixed annuities carry a pre-determined rate of interest and are suitable for cautious investors. Variable annuities invest in mutual funds, stocks, bonds and money market instruments. Hence, the returns tend to vary as they follow the market movements. Variable annuities are more suitable for young women professionals, whose salary can absorb financial losses.

If you are interested in making gains from the stock markets, but want to shield your principal amount from the volatilities of the share market, then you can opt for equity-indexed annuities. These annuities invest in stock indices like Standard & Poor's 500 Composite Stock Price Index. Your account is credited with gains made by the selected stock index. You also receive a minimum rate of interest, if the stock index is registering losses.

Women can also look forward to becoming a co-annuitant in their spouse's annuity policies. Married couples have the option of purchasing a joint annuity policy, which promises to pay a certain amount of money, in case of death of one of the partner.

Annuities are perfect investment option for women. Women tend to live longer. Annuities can assure them an income for lifetime. Similarly, annuities are a low-risk option and are perfect for women who do want to see their savings vanished.

Just remember that try to include a variety of annuities in your investment portfolio. This will ensure a financially secured life.