How Are Annuities Used? 
There are two major uses for annuities . For a traditional immediate annuity the use is to provide an uninterrupted stream of income that will last until the death of the surviving annuitant . The deferred annuity has a feature that is very useful and that is the deferral of income tax on the earning of the annuity . There are a wide variety of specialized annuities that might serve additional purposes but these are the basic uses . 