Should you die before the annuity pays benefits for the specified term, your beneficiary receives the same payout for the remainder of the term. You and your spouse receive payout until one of you dies. The survivor then receives a reduced payout for life. Comparing an Annuity with a CD Mortality studies show people are living longer and will need to increase savings to supplement Social Security. Annuities offer the advantage of being tax-deferred until distributed.
Distribution usually occurs when the annuitant is retired and in a lower tax bracket.
Interest on a CD is taxable every year interest is earned.