An annuity is an insurance plan that offers tax-deferred growth with the inborn ability to produce income options, including income over the lifetime of a person over a specified period.
A fixed annuity is an insurance product which protects against loss and generally offers fixed rates of return for several years, and then periodically changes based on current rates.
A variable annuity is a contract which an insurance company sells. The contract provides future payments to the holder, based on the strength of the underlying securities of the contract.