This allows more time to assess finances and prevents adding to the decision-making that comes with such a loss. To answer your question, there are many types of annuities. Earnings grow tax-deferred and are taxed as ordinary income upon withdrawal. In most cases, paying taxes to save taxes is not advantageous. Should an IRA be suitable for you, fund it with money that is not already tax-advantaged.
Insurance companies issue annuities.
If, however, your wife also also was named on the annuity, the surrender charge may be waived depending on how the annuity is structured. In assessing your situation, one may be more beneficial than the other. However, these designations can supersede a will, so be certain you have chosen them carefully. Therefore, since you don't need the money, do not cash in the annuity without consulting a qualified financial planner who is versed in annuities. He or she can help assess your personal situation and determine an appropriate plan based on your needs and goals.