There are 3 primary categories of payments.
We use the categories to break out payments of varying terms and to describe the nature of the payment stream.
Immediate Income Secondary Market Annuities offer a steady stream of income. We define ‘Immediate” as starting within a few months, and these income streams can last from 7-10 years on the very short end, to 30+ years on the long end. Unless specifically noted, these are all guaranteed payment streams and will pay to the investor or their heirs.
Investors typically seek immediate income cash flows for retirement income and safe alternative investments.
Each payment is comprised of principal and interest. See our page on Taxes on Secondary Market Annuities for more info