Many folks are critical of variable annuities.
The two biggest concerns are high internal expenses and the questionable value of tax deferral. In fact, a variable annuity is simply a financial tool that works well for its intended purpose. The variable annuity has three unique features that can provide excellent results if used correctly. The first and most obvious feature of a variable annuity is tax deferral. When you make an investment in a variable annuity you can defer paying taxes on your profits until you begin withdrawing money.