An annuity is a contract you sign with an insurance company that could guarantee you income for the rest of your life. Ramsey says an annuity is a lot like ordering a burrito at Chipotle because these products can be customized to meet your personal needs. With an annuity, you can decide: How you want to pay for your annuity, whether it's a single payment or multiple payments When you start receiving annuity payments Whether you want your payments to be fixed/predictable each month or variable