Annuities may seem complex. In reality, they’re very straightforward — like a warm and delicious pizza. All variations of pizza contain the following basic structure; crust, sauce, cheese, and toppings. As for annuities, it’s nothing more than a contract between you and an insurance company. In exchange for premium payments, you’ll receive payments at a future date. Usually, this is either on a monthly, quarterly, semi-annual, or annual basis or in lump-sum.