What Is an Immediate Payment Annuity?

An instant payment annuity is a contract between a person and an insurance company that provides a guaranteed income to the owner, or annuitant, practically immediately. A delayed annuity, on the other hand, commences payments at a later date set by the annuity owner. A single-premium immediate annuity (SPIA), an income annuity, or simply an immediate payment annuity is a type of immediate annuity.

An annuity is some how like an insurance investment policy, only it is not. An annuity is when a person pay mostly a lump sum of cash(say $300) to an investment company who will invest the money and guarantees the annuitant a periodical income over a set period of time or for the natural life of the investor.
I suppose as its name implies, an immediate annuity is one where the annuitant starts to receives his/her income immediately after the investment is made (lets say within one month after and every month after that)