Money is indispensable. Its requirement is felt at every step in life right from our first baby steps till our death. However, we do not receive income throughout our life. When we are hale and hearty, we often work for 18 hours and at times do some extra work. This ensures a continuous flow of money. However, once the aging limbs start refusing to be dexterous and the legs are unable to carry the weight; the flow of income starts dwindling. And that’s when we start looking up to our investments.

However, the kind of investments made by you greatly affects your prospects of a regular income. For instance, if you invest in stock markets, you might be able to book a good profit. However, if you invest in seemingly, good companies that later go bust, your entire savings can get reduced to a zilch.

So, if you want to ensure a regular flow of income as well as a protection cover for your capital, then it is better to invest in annuities. In fact, if you are interested in receiving income as soon as you enter into a contract with your insurance company, then immediate annuities might prove to be good option.

A report from The Wall Street Journal, states that ‘last year, sales of immediate annuities totaled about $5.6 billion, nearly double what they were in 1999, according to data from Limra International, an insurance-industry association based in Windsor, Conn.’

Immediate annuities are a type of annuities wherein the annuitant makes a lump sum contribution to the insurance company and in return, the company guarantees a regular income. The annuitant can choose the option to receive the payment for a lifetime or for a specific period.

So why are more people opting for immediate annuities? According to, Stacy Schaus, a director with retirement-services provider Hewitt Associates of Lincolnshire, Ill. "People are living longer, and some may fear that they'll outlive their money, so they buy an annuity to make sure their money will last regardless of how long they may live."

The other fact that has led to an increase in the popularity of immediate annuities is that most of the companies are already shelving the traditional pension plans that enjoyed mass popularity among the retired people. Hence, more and more people are opting for annuities, and specifically for immediate annuities, that carry a low risk and guarantee a steady flow of income.

Immediate annuities also allow people to start receiving the payments almost immediately after they enter into a contract. This is good for retirees who would like to have a sort of stable and regular income once they stop receiving a salary check.

The fact that they provide guaranteed income and safeguard the annuitant’s savings has made immediate annuities a popular investment vehicle amongst the investors.