The word annuity can really have two meanings which are based on perception.  To those who think in terms of “investing”, an annuity will have a negative spin.  To those who think in terms of “deposits”, an annuity will be a positive.

The difference between an investment and a deposit is simple.  An investment is exposed to a risk or loss, a deposit is safe and secure and will have no exposure to risk.  Many times investing is a solid choice if long term growth is needed and the time horizon is at a reasonable distance.

However, if safety and security is essential, then an annuity may be a logical choice.  In addition to market rate returns, annuities offer additional contractual benefits.

These benefits include:

Tax Deferred Growth: The interest earned in an annuity is not taxed until it is touched; your funds in an annuity grow tax deferred.

Probate Avoidance: With a named beneficiary, your annuity funds transfer to a beneficiary without the need for probate.

Income: At any time, annuities can change from a savings (deposit) or accumulation vehicle to an income vehicle.  Options for income exist that can provide an income for as long as you live, even lifetime.

No fees, charges, sales commissions are ever charged on fixed annuities.  Your interest earned is your interest to keep.