For example, if an owner of a taxable investment decides to sell one investment and put his or her money in another, the profits on the taxable investment is subject to taxes. With an annuity, an owner can transfer the money into another annuity, with the taxes on earnings deferred until he or she actually takes the money out of their annuity for good. During the accumulation phase, a fixed annuity is similar to a CD with the added benefit of tax-deferral. Your money earns competitive tax-deferred interest without stock market risk and the security of your principal is guaranteed by the issuing insurance company. The rights of the owner of an annuity.
Owners have the right to the cash surrender value.
They can also name the beneficiary, assign the policy and make withdrawals. Oftentimes, the owner is also the annuitant. The owner may be an individual or a trust. Inflation - The increase in the price of the goods and services bought by consumers. Premium - The payment made to keep an insurance policy current and in force.