Then the dollars accumulate in a tax free environment. Flexible Premium Annuities, allow the annuity holder to deposit an initial premium and subsequent deposits on various deposit modes. The monies also grow tax deferred. Single Premium Immediate Annuity, is used to create an immediate payout, whether it be, monthly, quarterly, or yearly. There are many payout options which can be reviewed at the FAQ section.
Individuals invest billions of dollars yearly into annuities.
Tax deferred annuities should be part of your overall investment portfolio. They provide better gains than traditional CD's and yet superior security. Largest 1998 Annuity Carriers Worst Annuity Providers Lists by Weiss Rating service for 1998.