Whether you are considering buying a variable annuity, or a fixed annuity, one of the options you have is to select an immediate income annuity. An immediate annuity is one in which your annuity payments begin immediately, or within a few months after buying. It can be a fixed rate  immediate annuity, or a variable immediate annuity. The contract specifies that there  is no accumulation phase, therefore, right after you purchase the annuity, you start to receive regular payments.

Immediate annuities are often chosen by people who are at retirement age, or are already retired. They may be rolling over funds from some other savings instrument. They have done their accumulation of savings during their working years, and are now ready to begin living on the proceeds. You may wish to buy an immediate life annuity when you retire. 

A younger retiree who buys a single-premium immediate annuity will get a lower monthly payment than an older one. So, if you can wait five years for those payments, it may be wise to purchase your annuity at age 70 rather than at age 65. Or, you can buy a small immediate annuity now, and add another immediate income annuity in a few years to supplement it.

Fixed annuity: immediate or deferred, what are the advantages of each annuity type? An immediate income annuity will start to pay out regular payments right away. With a  deferred annuity, funds are paid in and interested is credited during the first phase, before payments begin. A "CD annuity" is a type where the interest rate is guaranteed to stay the same during the agreed-upon period, say, five years, similar to a bank CD. Fixed income annuities are not securities; thus, they are not regulated by the SEC. Variable annuities are securities; they are regulated by the SEC. If you follow the annuity rules, your annuity will accumulate earnings on a tax-deferred basis until you make withdrawals. 

A fixed immediate income annuity is a wise choice for many retirees.  The regular, periodic annuity payments mean that you won't be outliving your benefits. Many companies that sell immediate annuities are large financial institutions like Fidelity, Prudential Insurance, or Metlife.