In insurance, an annuity is payout setup that was invested into earlier by means of payments. In exchange for purchase or regular payments from the insured, the annuity insurance payments are setup to be delivered in a series or stream of payments to the recipient. At the time specified, the insurance company will begin sending payments to insurance recipient for as long as was defined in the agreement. Sometimes, such as in the case of life insurance, annuities may continue regular payments until the beneficiary's death. If an annuity is made to be paid immediately, the purchase of insurance will initiate payments to the investors. In a deferred payment, on the other hand, payments to not begin until a later date, or in the case of life insurance, upon the death of the insured.