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An immediate annuity is a type of financial product designed to provide income payments that begin almost immediately after the initial investment is made. This characteristic is what distinguishes it from other types of annuities.

When an individual purchases an immediate annuity, they typically make a lump-sum payment to the insurance company or financial institution, and in return, they receive regular payments, which can be for a fixed period or for the duration of their lifetime. This immediate stream of income is often appealing to retirees who need to convert their savings into a reliable source of income right away.

In contrast, a deferred annuity would not provide payments immediately; instead, it allows the investment to grow over time and begins to pay out at a later date. The variable annuity is tied to investment performance, and payouts can fluctuate based on the returns of the underlying investments. A single premium annuity refers to the method of funding—specifically, making a one-time payment—but can be either immediate or deferred depending on the contract terms, so it does not inherently guarantee immediate payments.

Thus, the immediate annuity is specifically structured to start disbursing payments without delay, making it the correct choice for this question.