Description Term This annuity allows the purchaser to receive monthly benefits immediately. Immediate annuity The amount that is ultimately paid out to the insured varies with the investment results obtained by the insurance company. Variable annuity Starting with regular payments (monthly, quarterly, annually) and as low as $100, this annuity is purchased over an extended period of time. Installment premium annuity contract This type of contract allows cash benefits to be stretched for several years. This type of annuity pays a set amount of monthly income for a specified number of years for the insured and beneficiaries