An annuity is a type of insurance contract that pays out a guaranteed income stream over a specified period, usually for the rest of your life. Here are the essentials and advantages of annuities:

1. Retirement Income: Annuities are often used to provide retirement income because they provide a guaranteed stream of income for life or a specified period. This can be especially important for those who are worried about outliving their savings.
2. Tax-Deferred Growth: Annuities can grow tax-deferred, meaning you do not pay taxes on the gains until you withdraw the money. This can help your money grow faster over time, as you are not losing a portion of your gains to taxes each year.
3. Variety of Options: There are many different types of annuities available, including fixed, variable, and indexed annuities, each with its own benefits and drawbacks. This allows you to choose the annuity that best fits your needs and financial goals.
4. Legacy Planning: Many annuities offer a death benefit, which means that if you pass away before the end of the annuity period, your beneficiaries will receive a payout. This can be a helpful way to provide for your loved ones after you are gone.
5. Protection from Market Volatility: Annuities can provide protection from market volatility, as they are often designed to offer a guaranteed rate of return. This can help protect your savings from market downturns.

Overall, annuities can be a helpful way to provide retirement income and protect your savings from market volatility. However, it's important to understand the costs and fees associated with annuities, as well as the potential risks and drawbacks. It's important to work with a financial professional to determine if an annuity is the right choice for your financial goals and needs.