Although called annuities, Swiss annuities act more like a savings account than a deferred annuity. But it is operated under an insurance company's umbrella, so that it conforms to the IRS' definition of an annuity, and as such, compounds tax-free. They also cannot be included in a Swiss bankruptcy procedure. Even if an American court expressly orders the seizure of a Swiss annuity account or its inclusion in a bankruptcy estate, the account will not be seized by Swiss authorities, provided that it has been structured the right way. Also, to avoid suspicion of making a fraudulent conveyance to avoid a specific judgment, under Swiss law, the person must have purchased the policy or designated the beneficiaries not less than six months before any bankruptcy decree or collection process.
Swiss annuities provide investment and tax benefits that are far superior to American annuities.
Some annuity holders are afraid that if they cash in their old annuities they will have to pay taxes on the accumulated earnings of the cash value. That's not true. The tax code allows you to exchange insurance policies tax free. You can exchange life insurance for life insurance, an endowment contract for another endowment or annuity contract, and an annuity for another annuity. A recent Tax Court case makes the exchange even easier.