An annuity contract is a financial product that allows individuals to save and generate income over time. It is essentially an investment account with a lifespan, typically ran by an insurance company. Annuities offer investors an opportunity to gain steady income in retirement, typically through fixed payments or periodic disbursements. They also provide protection against the risk of outliving their money by offering guaranteed payments for life, no matter how long the individual lives. By investing in an annuity contract, investors can build up a large sum of money over time that they can use as retirement income to cover their expenses.