What Are The Best Annuities? 
Annuities are very complex . Selecting the best annuity is a function of needs . At their core annuities provide a lifetime of uninterrupted income . Nothing else can guarantee that result . It takes the risk of outliving your money off the table . The single premium annuities are the basis upon which every other annuity is developed . Development of annuities has followed two general lines . The first is the accumulation of money and the second is the distribution of money . Annuities can be funded with a single premium or a flexible series of premiums . Since the Internal Revenue Code recognizes the value of annuities the growth that the money placed in an annuity experiences is not subject to current income taxes . These deferred tax plans can have powerful advantages over alternative investments . Annuities can earn income in a variety of ways . Some are guaranteed while others are not . Some have guaranteed rates and also allow that the rate can increase as market conditions make that possible . There are many schemes to determine interest rates but many contracts guarantee a minimum rate below which they will not fall . Annuities are often sold with interest bonuses for a specified period of time . These bonuses are inducements to purchase the annuity but are often tied to the surrender period of the contract . Since an annuity is a long term cash accumulation plan withdrawing money early from the contract is subject to surrender charges over a specified period of time in most contracts . There are a number of ways benefits can be paid under annuities because there are a wide variety of needs . The traditional way is in a lifetime flow of regular payments . When a person is concerned that they might make a deposit and then die shortly afterwards there are options that can be selected that make payments for a specified period of time to either the annuitant or beneficiary . Others make lifetime payments as long as one of two people is alive . There are even options that make lifetime payments as long as one of two people are alive but will pay a beneficiary if both die prior to the end of a certain period of time . In addition to options that provide a benefit for a period certain , there are also similar options for return of deposit . There are annuities that defer the payment of the benefit for an extended period of time . The advantage of this type of annuity as that you are able to purchase an amount of money that wont be delivered for a long time and all that growth and interest is being deferred from current income tax . These policies can make a tremendous increase in income and may be used to offset anticipated cost of living increases . Annuities come with several riders that guarantee various aspects of the contract . When the cash value of the annuity isnt guaranteed you can purchase a rider that will pay a specified lifetime income even if the account balance is exhausted . Annuities are complicated and there are companies trying new ideas every day . You will probably find that there is an annuity that will play an important role in your retirement income planning . 